The recently hacked multichain token bridge, Allbridge, announced that its team received 1,500 BNB worth around $465,000, while the rest of the funds will be considered a white hat bounty to the exploiter. Allbridge’s bridge protocol allows digital asset transfers from one blockchain network to another through liquidity pools. Over the weekend, a malicious entity drained funds using a flash loan by manipulating the prices in Allbridge’s liquidity pools on BNB Chain.
After the exploit, Allbridge suspended its bridge protocol and offered an undisclosed bounty to the attacker to avoid legal consequences. Although the figure is yet to be confirmed, security firms CertiK and PeckShield estimated that the stolen funds were over $550,000. Allbridge later converted the received funds to BUSD to use them for compensation. Another address that used the same exploit technique was involved in the hack but did not contact Allbridge. The project urged the second attacker to discuss returning the stolen funds.
Allbridge previously announced plans to set up a “recovery fund” to compensate victims while temporarily suspending the project’s operations until the issue is resolved. The liquidity providers can withdraw their assets from Allbridge’s liquidity pools through a separate web interface.
Crypto Drained in Exploits: March Edition
In March, recovering digital asset prices attracted many exploiters as hacking attacks became more significant. According to PeckShield, cyber criminals drained over $211 million worth of crypto in March, a 500% increase from the $35.3 million lost in February, with 26 different hacks recorded. The Euler Finance exploit accounted for 93% of the total stash followed by SafeMoon with $8.7 million and ParaSpace with $5.2 million in losses.