Allbridge Core Suspends Protocol After Security Incident

Allbridge Core said it has paused the protocol after a security incident and is investigating the matter. According to PANews, users holding affected liquidity pool (LP) positions were advised to withdraw their funds immediately. The incident caused an imbalance in the liquidity pool and created a temporary arbitrage opportunity. The project called on arbitrage users to return funds for compensation to affected liquidity providers (LPs). Onchain Lens reported that Allbridge Core’s losses exceeded $1.1 million.