Taiko has issued an urgent warning to users, advising them to immediately withdraw funds from all bridges operating on the network following a confirmed security breach.
The incident marks another major security event in the crypto space, with early reports suggesting losses of approximately $1.7 million.
Security Breach Impacts Core Verification System
Taiko confirmed that its chain state verification mechanism was compromised, raising serious concerns about the network’s security infrastructure.
Because this system plays a key role in validating chain data, the breach has undermined the security assumptions of all bridge protocols deployed on Taiko.
As a result, users are being urged to remove funds from affected bridges as a precaution.
The Taiko team stated that it is actively working with its Security Council and ecosystem partners to contain the incident, suspend impacted systems where possible, and pursue both technical and legal responses.
Losses Estimated at $1.7 Million
At the moment, Taiko has not disclosed the total amount of funds currently at risk or provided full details on whether additional assets have been compromised.
However, according to blockchain security firm PeckShield, the exploit resulted in estimated losses of around $1.7 million.
PeckShield also reported that the attacker has already moved 1.99 million TAIKO tokens, valued at just under $200,000, to MEXC.
Investigation Ongoing
The full scope of the breach remains unclear, and investigations are still underway.
For now, Taiko users are being advised to act cautiously and monitor official updates closely as the team works to assess the damage and secure the network.
The incident once again highlights the security risks facing blockchain bridges and layer 2 ecosystems, where vulnerabilities in core infrastructure can quickly put user funds at risk.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
