Taiko, an Ethereum layer 2 blockchain, has issued an urgent advisory for users to withdraw all funds from bridges operating on its network. The directive comes after the network confirmed a security breach affecting its chain state verification mechanism.
“We have confirmed a compromise of Taiko’s chain state verification mechanism,” the Taiko team stated. “As a result, the security assumptions of all bridges deployed on Taiko can no longer be relied upon.”
The development team is reportedly collaborating with the Security Council and other ecosystem partners to contain the incident. Efforts are underway to pause affected systems where feasible and to pursue both technical and legal remedies.
Details regarding the total value of funds at risk or any confirmed theft remain scarce. However, blockchain security firm PeckShield reported that the exploit resulted in a loss of approximately $1.7 million. PeckShield also noted that the attacker had transferred 1.99 million TAIKO tokens, valued at just under $200,000, to the MEXC exchange.
PeckShieldAlert on X (formerly Twitter) stated: “@taikoxyz has been exploited for ~$1.7M. The exploiter has already transferred 1.99M $TAIKO (~$189.12K) to #MEXC.”
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