Taiko urges users to withdraw as bridge exploit drains $1.7M
Taiko, an Ethereum layer-2 network, told users to withdraw funds from all bridges after an exploit compromised its chain state verification mechanism. Taiko said bridge security assumptions can no longer be trusted and paused affected systems while working with partners to contain the incident. Security firm Blockaid said the issue likely involved flawed validation of source signals, letting attackers accept fake message proofs on Ethereum without legitimate Taiko proofs and then trigger unauthorized ERC20 vault withdrawals. Estimated losses range from about $1 million to $1.7 million. The attacker has already moved 1.99 million TAIKO tokens worth roughly $189,000 to MEXC, while about $1.5 million in ETH remains in exploiter wallets. The incident is part of a broader surge in DeFi hacks this month, with at least 23 exploits reported.
