Security Shock for Popular Altcoin: $1.7 Million Stolen, Emergency Withdrawal Call

Ethereum Layer 2 network Taiko (TAIKO) has halted block production due to a security breach and has urged users to immediately withdraw their assets from bridges.

As security concerns persist in the cryptocurrency world, Ethereum-based layer 2 solution Taiko (TAIKO) has confirmed the detection of a serious vulnerability in its network. The protocol has temporarily suspended operations, stating that all bridges have become insecure due to a flaw in the chain verification mechanism.

The Taiko team announced in a social media statement that they are working in coordination with the Security Council and ecosystem partners. Block producers on the network have completely halted new block production while the source of the issue is investigated. Additionally, the team has requested that centralized exchanges suspend Taiko (TAIKO) token deposits until further notice.

Security Vulnerability in Taiko Bridge and Losses

According to investigations by security firm Blockaid, the primary cause of the attack appears to be an error in the bridge’s proof verification system. It is reported that the attacker enabled unauthorized asset withdrawals from the ERC-20 vault by making fake messages appear valid on the Ethereum mainnet. This situation led to the manipulation of the network’s security protocols, paving the way for significant financial loss.

On-chain analysis platform PeckShield reported that assets worth approximately $1.7 million were stolen as a result of the attack. Data shows that the attacker transferred 1.99 million Taiko (TAIKO) tokens, valued at approximately $169,702, to the MEXC exchange. The protocol, which launched on the mainnet in May 2024, invites users to immediately withdraw their funds from all bridges to protect their assets.