Cross-chain protocol Allbridge confirms a $1.65 million loss from its liquidity pool and plans to abandon the old architecture

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Daily reports that cross-chain protocol Allbridge has issued an official statement confirming that attackers have withdrawn approximately $1.65 million worth of assets from the Allbridge Core liquidity pool.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

In response to this incident, Allbridge plans to relaunch a Core version but will eliminate the liquidity pool design. Future cross-chain transfers will be executed via Circle CCTP and LayerZero routers, aiming to eliminate the risks of liquidity pool imbalances and the model vulnerability exploited in this attack. This incident has accelerated the previously initiated migration plan towards 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 3 months, and users need to withdraw their related liquidity in advance.

It is reported that this attack has exposed the risks of the traditional cross-chain liquidity pool model, further driving the protocol's transition towards a cross-chain architecture based on message passing and native asset transfers.