Taiko has issued a security notice urging users to withdraw funds from every bridge running on its network after confirming a compromise of its chain‑state verification mechanism.
Compromise Details
The Ethereum Layer‑2 project announced on June 22, 2026 that the security assumptions underlying its bridge architecture can no longer be trusted. Taiko’s team is working with its Security Council and ecosystem partners to contain the breach and protect investors.
Blockaid Investigation
Blockchain security firm Blockaid reported an ongoing attack on Taiko’s ERC‑20 Vault on Ethereum, identifying losses exceeding $1 million. The firm disclosed the vulnerable contract, the attacker’s wallet address, and the exploit transactions linked to the incident.
Implications for Investors
Analysts warn that the flaw in Taiko’s bridge source‑signal proof validation could destabilize the broader crypto market if left unchecked. Investors are advised to monitor bridge activity closely and consider reallocating assets until the blockchain platform restores full security confidence.