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Allbridge suffered a loss of approximately $1.65 million due to a flash loan attack, and the cross-chain protocol has been suspended

According to Decrypt, the cross-chain bridge protocol Allbridge has suspended its Core protocol due to a flash loan attack, with the attacker having stolen approximately $1.65 million in assets from the Solana stablecoin liquidity pool.According to analysis by blockchain security firms PeckShield and CertiK, the attacker borrowed $1.12 million in flash loan funds through the Solana lending protocol Kamino, and then manipulated the price mechanism within the Allbridge pool through multiple stablecoin exchange operations to exchange assets at a low price, subsequently transferring the funds across chains to an Ethereum address.During the attack, the attacker exchanged several thousand dollars in USDT to obtain approximately $2.24 million in USDC, and then bridged the funds to Ethereum for further dispersal. It is currently unclear whether some of the funds can still be recovered.Allbridge stated that the team has suspended the Core protocol for security reasons and has requested affected liquidity providers to withdraw their funds immediately. Due to the attack causing an imbalance in the liquidity pool, some traders profited from arbitrage opportunities. Allbridge has called on relevant users to return their profits, stating that the funds will be used to compensate affected LPs.The team indicated that there is no further risk to user funds at this time and will release a detailed incident analysis report after completing the investigation, while also planning to relaunch the Core protocol after removing the liquidity pool. This is the second time Allbridge has encountered a similar flash loan attack. In April 2023, the protocol's BNB Chain liquidity pool suffered a loss of approximately $573,000 due to a similar vulnerability, after which the project team stated that they had recovered most of the funds and adjusted the liquidity calculation mechanism.

first_img CryptoQuant Founder: The strategy should suspend buying BTC, as current purchases resemble a liquidity black hole rather than a price catalyst

CryptoQuant founder Ki Young Ju stated that the current Bitcoin purchasing behavior of Strategy resembles a "liquidity absorber" rather than an effective price catalyst.He pointed out that in the past two years, Bitcoin's market capitalization has increased by $467 billion, yet the price has actually dropped by 1%, indicating that the influx of large amounts of capital has merely resulted in a transfer of chips without driving up the price. In the current environment with obvious selling pressure, continuous buying by Strategy may only serve to maintain the range rather than truly drive an increase.Ki Young Ju suggested that Strategy pause Bitcoin purchases until cash reserves and dividend coverage capabilities are restored; establish a systematic, model-driven buying framework to avoid the market impression of "always buying at local highs"; and create a disciplined selling mechanism in the next bull market to reduce leverage and realize shareholder value by partially taking profits at highs, while accumulating reserves of "dry powder" for future lows.He believes that this cycle is different from previous ones, as Bitcoin has been in a sideways trend for nearly two years, neither forming a strong bull market nor experiencing sufficient panic selling and weak hands clearing out. The market may need a more thorough clearing to initiate a healthier rebound.
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