Allbridge announces recovery plan after recovering $467K of stolen funds

On Apr 4, 2023

Cross-chain project Allbridge disclosed that it had recovered more than $467,000 worth of stolen funds on April 3 and announced a recovery plan on April 4.

Allbridge recovers 1,500 BNB

Allbridge said that the owner of an account containing stolen funds returned 1,500 BNB (currently valued at $467,000). The project said that the account holder would be allowed to keep the remaining unreturned funds as a white hat bounty.

The project also said that a second address performed an identical attack but has not contacted the project to negotiate a return of the affected funds.

Elsewhere, Binance CEO Changpeng Zhao acknowledged Binance’s involvement in the case. He said Binance’s ability to identify the attacker likely helped to facilitate the return.

Now, as of April 4, Allbridge has stated that it will begin to repay the community. It will first compensate users whose transactions were interrupted during the platform’s emergency shutdown. It will then compensate affected liquidity providers (LPs).

Attack began days ago

Allbridge was originally hacked on April 1 in an attack that targeted the project’s BUSD/USDT pools on Binance’s BNB Chain. Allbridge said that the attack only affected those BNB Chain pools but said that the exploit could extend to other pools.

To defend itself, Allbridge quickly halted its bridge platform and created a web interface for liquidity pool operators to withdraw their balances.

The bridge is still closed, according to Allbridge’s website. The project’s liquidity pools were brought online on April 2 but will be closed again during the compensation process.

The total amount of funds stolen is still unknown. Early estimates from blockchain security firm PeckShield estimate that about $570,000 was stolen during the attack. However, it is unclear if more funds were stolen following the first reports.

The price of Allbridge’s native cryptocurrency token (ABR) is up 0.8% over the past hour and down 1.4% over the past seven days.

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