Taiko Loses $1.7M In Bridge Exploit, Suspends Block Production And Freezes Withdrawals

by
Alisa Davidson

Revealed: June 22, 2026 at 3:03 am Up to date: June 22, 2026 at 3:03 am

by Anastasiia O

Edited and fact-checked:
June 22, 2026 at 3:03 am

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Blockchain safety agency PeckShield reported that Ethereum Layer 2 scaling community Taiko was lately exploited in an incident that resulted in losses of roughly $1.7 million.

Based on the agency, the attacker transferred 1.99 million TAIKO tokens, valued at roughly $189,120, to the cryptocurrency trade MEXC and continues to carry 870.8 ETH price roughly $1.52 million.

Web3 safety platform Blockaid said that the breach seems to have originated from a vulnerability in Taiko’s bridge source-signal proof validation course of. The flaw allegedly allowed specifically crafted message proofs to be acknowledged as legitimate on Ethereum’s Layer 1 community regardless of the absence of professional MessageSent occasions on the Taiko supply chain. Consequently, fraudulent bridge messages could possibly be registered and later redeemed, enabling unauthorized withdrawals of belongings from the protocol’s ERC-20 vault.

Taiko Implements Emergency Measures to Include Breach

Following the invention of the exploit, Taiko confirmed that its chain state verification mechanism had been compromised, warning that the safety assumptions underpinning all bridges deployed on the community may now not be thought-about dependable. The mission stated it had begun coordinating with its Safety Council and ecosystem companions to comprise the incident, droop affected methods the place attainable, and pursue each technical and authorized responses.

The crew suggested customers to right away withdraw funds from all bridges working on Taiko and urged centralized exchanges to droop TAIKO deposits till additional discover. In the course of the investigation, block manufacturing by Taiko proposers was quickly halted.

In a subsequent replace, Taiko reported that the state of affairs had been contained. The mission said that the affected bridge and vault had been paused, stopping any additional withdrawals. Bridge operations in each instructions have been taken offline, whereas pending transactions have been suspended moderately than misplaced. Further particulars are anticipated to be launched because the investigation continues.

Taiko is a decentralized Sort 1 ZK-EVM Layer 2 blockchain designed to enhance Ethereum’s scalability. The community allows quicker and lower-cost transaction processing whereas sustaining Ethereum equivalence, permitting builders to deploy present Ethereum sensible contracts with out modifying their code.

On the time of writing, TAIKO, the community’s native token, had declined 9.41% over the earlier 24 hours and was buying and selling at $0.07500. Based on CoinMarketCap knowledge, the token beforehand reached a excessive of $0.12000.

The incident provides to a sequence of safety breaches affecting the DeFi sector in latest months. Over the identical weekend, one other exploit was reported on Secret Community, the place an attacker allegedly leveraged an “infinite mint” vulnerability in a sensible contract to create unbacked wrapped variations of Axelar-wrapped belongings, leading to losses estimated at $4.67 million.

Alisa, a devoted journalist on the MPost, makes a speciality of crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.

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