Taiko urges users to withdraw as bridge exploit drains $1.7M

Taiko’s bridge and ERC20 Vault on Ethereum suffered a compromise in its chain state verification mechanism, allowing forged proofs and unauthorized withdrawals.

Taiko, an Ethereum layer-2 blockchain, has urged its users to withdraw assets from the network’s bridges after an exploit on one of its bridge protocols saw attackers make off with $1.7 million in the latest decentralized finance hack this month.

“We have confirmed a compromise of Taiko’s chain state verification mechanism,”   Taiko posted to X early on Monday. “As a result, the security assumptions of all bridges deployed on Taiko can no longer be relied upon.”

“We strongly advise all users to withdraw their funds from all bridges deployed on Taiko immediately,” it added.

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