Taiko has issued an urgent advisory for users to remove funds from all bridges operating on its platform after confirming a security breach in its chain state verification system. The Layer 2 scaling solution for Ethereum stated that the integrity of its bridge infrastructure can no longer be trusted. This warning came after Blockaid, a blockchain security firm, detected an active exploit targeting Taiko’s ERC20 Vault on Ethereum, with losses exceeding $1 million. According to Blockaid, the vulnerability stemmed from inadequate validation of source-signal proofs within the bridge, allowing fabricated message proofs to pass inspection on Ethereum’s mainnet without corresponding legitimate events on Taiko’s source chain. This flaw enabled the attacker to execute fraudulent bridge messages, resulting in unauthorized asset withdrawals from the vault.
In response, Taiko confirmed the broader verification issue and is collaborating with its Security Council and ecosystem partners to address the situation. The project has temporarily halted block production by proposers and requested centralized exchanges to suspend TAIKO deposits immediately until further notice. A list of attacker addresses has been published, and the team has pledged to pursue both technical fixes and legal actions. No timeline has been provided for restoring bridge security or resuming block production.
This incident highlights ongoing risks in cross-chain bridge technology. Recent data from CertiK indicates that cross-chain bridge exploits accounted for $28.6 million in losses during May, representing 42% of total losses that month. Other notable bridge failures this year include the Verus Protocol Ethereum bridge losing over $11.5 million to a forged-transfer attack, Axelar disabling Secret Network bridge routes after a $4.7 million exploit, and an old Aztec Connect contract losing about $2.1 million due to a verification mismatch. Taiko, a Type 1 Ethereum-equivalent ZK-EVM rollup that launched its mainnet in May 2024, continues to face the challenge of ensuring robust security in an increasingly targeted area of decentralized finance.