Cross-chain protocol Allbridge confirms $1.65 million loss from liquidity pool and plans to deprecate old architecture

Odaily reports that the cross-chain protocol Allbridge has issued an official statement confirming that an attacker has withdrawn approximately $1.65 million in assets from the Allbridge Core liquidity pool. A detailed analysis of the incident is currently being compiled, and the full investigation results will be published subsequently. The team emphasizes that there is no further risk to current user liquidity and that the Allbridge Next service is operating normally.

In response to this incident, Allbridge plans to relaunch the Core version but will remove the liquidity pool design. Future cross-chain transfers will be facilitated via Circle CCTP and the LayerZero router to eliminate the risk of liquidity pool imbalance and the model vulnerabilities exploited in this attack. This incident has accelerated the previously initiated migration plan to fully transition to the more secure new infrastructure, Allbridge Next. According to the plan, Allbridge Core and Allbridge Classic will cease operations in their current form within the next three months, and users are advised to withdraw their relevant liquidity in advance.

It is understood that this attack has exposed the risks inherent in the traditional cross-chain liquidity pool model and has further driven the protocol's transition towards a cross-chain architecture based on message passing and native asset transfer.