Allbridge offers bounty to exploiter who stole $570K in flashloan attack

The attacker behind a $573,000 exploit on the multi-chain token bridge, Allbridge, has been offered a chance by the firm to come forward as a white hat and claim a bounty.

Blockchain security firm Peckshield first identified the attack on April 1, warning Allbridge in a tweet that its BNB Chain pools swap price was being manipulated by an individual acting as a liquidity provider and swapper, which allowed them to drain the pool of $282,889 in Binance USD (BUSD) and $290,868 worth of Tether (USDT).

In an April 1 tweet following the hack, Allbridge offered an olive branch to the attacker in the form of an undisclosed bounty and the chance to escape any legal ramifications.

To hacker’s attention: addressing the incident and the next steps

1. We continue monitoring the wallets, transactions, and linked CEX accounts of individuals involved in the hack.

— Allbridge (@Allbridge_io) April 2, 2023

“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 wrote.

In a separate series of tweets, Allbridge made it clear they are hot on the trail of the stolen funds.

With the help of its “partners and community,” Allbridge said it’s “tracking the hacker through social networks.”

“We continue monitoring the wallets, transactions, and linked CEX accounts of individuals involved in the hack,” it added.

Allbridge also stated it’s working with law firms, law enforcement and other projects affected by the exploiter.

According to Allbridge, it bridge protocol has been temporarily suspended to prevent the potential exploits of its other pools; once the vulnerability has been patched, it will be restarted.

5/ The bridge has been temporarily suspended to prevent the potential exploits of the other pools. We will restart it once the vulnerability has been patched.

— Allbridge (@Allbridge_io) April 2, 2023

“In addition, we are in the process of deploying a web interface for liquidity providers to enable the withdrawal of assets,” it added.

Blockchain security firm CertiK offered an in-depth breakdown of the hack in an April 1 post, identifying the method used was a flashloan attack.

Certik explained the attacker took a $7.5 million BUSD flashloan, then initiated a series of swaps for USDT before deposits in BUSD and USDT liquidity pools on Allbridge were made, manipulating the price of USDT in the pool, allowing the hacker to swap $40,000 of BUSD for $789,632 USDT.

Related: DeFi exploits and access control hacks cost crypto investors billions in 2022: Report

According to a March 31 tweet from PeckShield, March saw 26 crypto projects hacked, resulting in total losses of $211 million. 

#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

Euler Finance’s March 13 hack was responsible for over 90% of the losses, while costly exploits were suffered by projects such as Swerve Finance, ParaSpace and TenderFi. 

Cointelegraph contacted Allbridge for comment but did not receive an immediate response.

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