The exploit mirrored vulnerabilities behind $340 million in bridge hacks this year, triggering a 10% drop in Taiko’s token.
Taiko, an Ethereum Layer 2 network, halted operations after an attacker exploited a bridge flaw to steal approximately $1.7 million. The breach involved forged withdrawal proofs, allowing fraudulent transactions to drain funds from the bridge and token vault before the team froze activity.
The attack used a cross-chain messaging vulnerability linked to over $340 million in bridge exploits this year. Taiko urged users to withdraw funds and plans to release a full incident report on Monday. The dollar loss was contained, but the incident highlights persistent security risks in Layer 2 networks.
Taiko’s token fell 10% following the exploit, reflecting investor concerns over the network’s security and operational stability.