Taiko Bridge Exploit Drains $1.7M, Users Urged to Withdraw Funds

• According to crypto security company Blockaid, a defect in the Taiko bridge’s validation of source signals seems to be the underlying reason.
• The exploiter has already sent 1.99 million Taiko (TAIKO) tokens, valued at about $189,000, to MEXC, according to PeckShield. 

Attackers stole $1.7 million in the most recent decentralized finance heist this month using an exploit on one of the network’s bridge protocols; Taiko, an Ethereum layer-2 blockchain, has now asked its users to remove assets from the network’s bridges.

On Monday, the layer-2 blockchain brought to light a vulnerability in Taiko’s chain state verification method. Accordingly, it went on to say that all bridges deployed on Taiko can’t be trusted based on their security assumptions anymore.

Users are urgently encouraged to promptly remove their funds from all Taiko bridges, according to the layer-2. According to DeFiLlama, there have been at least 23 crypto protocol vulnerabilities this month, and this is the most recent one. So far in June, the two biggest vulnerabilities have been Syscoin Bridge, which lost over $8 million, and the Humanity Protocol, which lost over $30 million.

Defect in Taiko bridge’s Validation of Source Signals

With the help of its partners, Taiko was able to limit the situation and put impacted systems on hold, according to the company. According to crypto security company Blockaid, a defect in the Taiko bridge’s validation of source signals seems to be the underlying reason.

The post claimed that Ethereum regarded message proofs as acceptable even if the Taiko blockchain did not have matching legal proofs. According to Blockaid, this opened the door for the hacker to register and then receive false bridge messages, which led to the illicit release of assets from the ERC20 vault.

According to Blockaid, the stolen assets were worth at least $1 million, and according to Lookonchain and PeckShield, they might be worth up to $1.7 million. The exploiter has already sent 1.99 million Taiko (TAIKO) tokens, valued at about $189,000, to MEXC, according to PeckShield. According to CoinGecko, TAIKO’s current market price is $0.084—98% below its 2024 top.

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