Taiko verification mechanism exploited: $1.7 million loss and token crash of 11%
On June 22, the team behind the L2 solution Taiko confirmed a compromise of the blockchain state verification mechanism. This incident jeopardized the security of all bridges deployed on the network. Developers strongly recommended that users immediately withdraw funds from all bridge protocols on Taiko, as previous security guarantees are no longer valid.
The project is actively coordinating with the security council and ecosystem partners to contain the threat. In parallel, the team has asked centralized exchanges to suspend deposits of the TAIKO token until further official notice. This is a standard but necessary measure to prevent further spread of stolen assets.
Analysts at Lookonchain estimated the damage at approximately $1.7 million. The attacker stole native TAIKO tokens and various "wrapped" ETH. Part of the stolen funds—1.99 million TAIKO (about $189,000)—has already been deposited on the MEXC exchange. At the time of publication, the hacker still held 870.8 ETH ($1.52 million). This indicates that the attacker is actively trying to liquidate assets, and users should exercise extreme caution.
The market reaction was immediate: the TAIKO coin dropped 11% in 24 hours, from $0.09 to $0.07. The 15-minute chart on the HTX exchange shows a sharp crash right after the incident announcement. This dynamic is typical for attacks on infrastructure projects, where trust in the asset is undermined instantly.
This case echoes the recent hack of the Axelar bridge with Secret Network on June 19, where an "infinite mint" vulnerability allowed the withdrawal of $4.67 million. Both incidents highlight that the security of L2 solutions and bridges remains one of the most vulnerable points in the DeFi ecosystem.
Expert opinion: The hack of Taiko's verification mechanism is not just a local incident but a signal for the entire L2 sector. Projects need to rethink their security architecture, especially regarding chain state verification. While the market consolidates, investors should avoid placing liquidity in bridges without thorough auditing and risk insurance.