Allbridge was reportedly the victim of the most recent theft to sweep the industry, with Peckshield, a blockchain security company, claiming that $570,000 was stolen from the cross-chain protocol.

The theft of $282,889 in Binance USD and $290,868 in Tether USDT was discovered on April 1 and reported by Peckshield to Allbridge.

The company claims that the hacker stole $570,000 in cryptocurrency by serving as a liquidity provider and a swapper to artificially inflate the swap price of the pool.

The Allbridge hack was confirmed by Certik, another blockchain security company. An estimated $549,874 was stolen by manipulating the swap price in the company’s liquidity pool, according to internal reports.

Allbridge Hack: Reward Awaits Hacker

Allbridge has given a bounty and legal immunity to the hacker who comes forward as a white hat in order to encourage the attacker to restore the stolen funds and help improve the security of the platform.

No one knows how much of a reward is being offered.

Please contact us via the official channels (Twitter/Telegram) or send a message through tx, so we can consider this a white hat hack and discuss the bounty in exchange for returning the funds.

— Allbridge (@Allbridge_io) April 2, 2023

A “white hat” in the context of crypto hacking is a hacker or security professional who utilizes their skills for ethical objectives, such as helping to improve security by locating weaknesses in systems and networks.

In order to protect their systems from being exploited by black hat hackers, many companies hire white hat hackers to perform penetration testing and vulnerability assessments.

“Black hat” hackers, on the other hand, steal information, disrupt services, or take advantage of security holes for their own gain. Hackers that wear a “gray hat” are a bit of a chameleon, using their skills for both good and evil depending on the context.

We are investigating the current situation with the BNB Chain pools.

The bridge has been temporarily shut down during the investigation.

We apologize for the inconvenience.

— Allbridge (@Allbridge_io) April 2, 2023

Allbridge Hack Forces Bridge To Be Closed

As this was taking place, Allbridge acknowledged the occurrence and temporarily deactivated the bridge so that further inquiries could be conducted. It will be restarted after the flaw that caused the vulnerability has been fixed.

According to a tweet by PeckShield, 26 crypto projects were hacked in March, resulting in a total loss of $211 million. This recent attack on Allbridge is part of this expanding pattern.

#PeckShieldAlert ~26 exploits grabbed $211.5M in March 2023.
Regarding the @eulerfinance exploit, the estimated loss is $197M. The exploiter has returned 84,963.4 $ETH (~$152.8M) and 29.9M $DAI to the Deployer, and he has already transferred 1,100 $ETH to Tornado Cash pic.twitter.com/kf2Ul4uIun

— PeckShieldAlert (@PeckShieldAlert) March 31, 2023

Almost 90% of the damages were caused by the hack on Euler Finance on March 13. Other projects, including Swerve Finance, ParaSpace, and TenderFi, also had significant exploits.

Allbridge emphasized that it is “tracking the hacker across social networks” with the help of its partners and community.

To ensure that those responsible for the hack are held accountable, the company said it will continue to monitor their wallets, transactions, and associated CEX accounts.

-Featured image from Coin68