Taiko Issues Urgent Withdrawal Notice After Chain Verification Breach

Taiko, an Ethereum layer 2 blockchain, has confirmed a security breach affecting its chain state verification mechanism. The team has urged users to withdraw funds from all network bridges immediately, as the security assumptions of these bridges can no longer be trusted. The exploit, first flagged by Blockaid, targeted Taiko’s ERC20 Vault, leading to losses exceeding $1 million. PeckShield reported that the attacker transferred 1.99 million TAIKO tokens, valued at approximately $200,000, to MEXC. Taiko is coordinating with its Security Council and ecosystem partners to manage the incident and pause affected systems. There is currently no information on the total funds at risk or if additional assets have been stolen. The situation is evolving, and users are advised to stay updated.

Key Points: • Taiko confirmed a breach in its chain state verification mechanism. • Users are urged to withdraw funds from all network bridges immediately. • The exploit has resulted in losses exceeding $1 million, with $200,000 in TAIKO tokens transferred to MEXC.