Vulnerability in Taiko L2 Network: Hacker Withdraws $1.7 Million, Bridges at Risk
On June 22, the team behind the second-layer (L2) solution Taiko confirmed a serious compromise of the blockchain state verification mechanism. This incident has called into question the security of all bridges deployed on the network. Users are strongly advised to immediately withdraw funds from all bridge protocols on Taiko, as they can no longer be trusted.
As a result of the attack, the attacker stole native TAIKO tokens and various "wrapped" ETH. According to estimates by Lookonchain analysts, the total damage amounted to approximately $1.7 million. The hacker has already deposited 1.99 million TAIKO tokens (worth about $189,000) on the MEXC exchange, while 870.8 ETH (approximately $1.52 million) remains in their wallet.
The Taiko team is actively coordinating with the security council and ecosystem partners to contain the incident. Additionally, developers have asked centralized exchanges to suspend TAIKO deposits until further official notice.
The market reacted instantly: within 24 hours, the TAIKO coin dropped by 11% — from $0.09 to $0.07. This reflects not only the direct losses from the hack but also a general loss of trust in the network's security.
Notably, this incident occurred just a few days after the hack of the Axelar bridge with Secret Network, where the attacker withdrew approximately $4.67 million using an "infinite mint" vulnerability. Both cases highlight the systemic vulnerability of cross-chain bridges in the DeFi ecosystem.
Expert commentary from Cryptalist: This hack is yet another alarming signal for the entire L2 solutions industry. The vulnerability in the blockchain state verification mechanism calls into question the fundamental security principles of Taiko. Until the team provides a detailed report on the root cause and remediation measures, trust in the network will remain in doubt. Investors should exercise extreme caution when working with bridge protocols on any L2 networks.