Taiko has disclosed that its chain state verification mechanism has been compromised, undermining the original security assumptions of cross-chain bridges deployed on the network. The project team has advised users to withdraw their funds from the affected bridge protocols as soon as possible and has requested centralized exchanges to suspend TAIKO deposits.
All bridge security prerequisites have been affected.
Taiko's announcement on X stated that the team has confirmed an issue with the chain state verification mechanism, rendering all cross-chain bridges on the network unable to operate under their original assumptions. The project team is working with the Security Committee and ecosystem partners to address the issue and has suspended affected systems where feasible.
This type of verification mechanism is typically used to confirm whether on-chain states are genuine and valid. If this step is compromised, the foundation for verifying cross-chain transactions is weakened, and bridged assets become exposed to higher risk.
The user is required to withdraw funds immediately.
As a temporary measure, Taiko advises users not to wait any longer and to withdraw their funds from all bridges deployed on the network as soon as possible to minimize the risk of further losses.
The project team has also requested centralized exchanges to suspend TAIKO token deposits until further notice. Taiko has also published wallet addresses associated with the attacker to help exchanges and investigators track abnormal fund flows and attempt to freeze the stolen assets.
- Users are advised to withdraw their bridged funds immediately.
- The exchange has been requested to suspend TAIKO deposits.
- Addresses associated with the attacker have been made public.
Confirmed losses exceed $1 million
Before Taiko's announcement, blockchain security company Blockaid disclosed that Taiko's ERC20 Vault on Ethereum had been compromised, with losses exceeding $1 million at the time.
Initial information suggests the issue may have occurred in the source-signal proof verification module of the cross-chain bridge. This module validates the legitimacy of cross-chain messages and transactions and is a critical component of the bridging system. Taiko states that the scope of the incident is still under investigation, and the final losses have not yet been fully determined.
Cross-chain bridges have long been a high-risk area for security incidents in the crypto industry. This event not only puts direct pressure on the Taiko ecosystem but also once again exposes the vulnerabilities in cross-chain infrastructure during verification and asset custody.