Taiko Loses $1.7M in Bridge Exploit, Halts Block Production

Developers warned of potential risks to bridges across the ecosystem and asked exchanges for assistance.

Hackers exploit Taiko, steal $1.7M and force network shutdown

22.06.2026 - 08:15

3 min

Key points:

Ethereum Layer 2 project Taiko lost approximately $1.7 million after an attack targeting a chain state verification mechanism tied to its bridge infrastructure.
The team temporarily halted block production and warned that the security assumptions behind bridges in the Taiko ecosystem can no longer be considered reliable.

Ethereum Layer 2 project Taiko has suffered a major security incident after an attacker exploited a vulnerability and drained roughly $1.7 million in assets. The team was forced to temporarily halt block production across the network as a precaution.

Source: X.com

Developers warned users that the security guarantees of bridges operating within the Taiko ecosystem should no longer be considered trustworthy until the investigation is complete. The team is working closely with the project’s Security Council and ecosystem partners to contain the incident and restore normal operations.

According to preliminary findings, the exploit stemmed from a vulnerability in the proof verification mechanism used by a Taiko bridge. Investigators believe the attacker was able to forge or manipulate proof data, bypass validation checks, and withdraw assets from an Ethereum-based ERC-20 vault.

Attacker Begins Moving Funds

Blockchain analytics platform Lookonchain reported that some of the stolen assets have already started moving. One wallet linked to the exploit transferred approximately 1.99 million TAIKO tokens, worth about $189,000, to crypto exchange MEXC.

The attacker’s address still holds around 870.8 ETH, valued at nearly $1.52 million. Taiko has published four wallet addresses associated with the exploit and requested that centralized exchanges temporarily suspend TAIKO deposits.

The incident adds to an already difficult year for cross-chain bridge security. According to DefiLlama, more than 20 crypto hacks were recorded in June alone. Major bridge-related exploits in 2026 include Gravity Bridge ($5.4 million), Axelar–Secret Network ($4.67 million), and Hyperbridge ($2.5 million). The largest bridge exploit of the year remains the $292 million attack on the LayerZero-based KelpDAO bridge in April.

As the investigation continues, all Taiko validators have stopped proposing new blocks. The network has effectively been paused to prevent further losses or additional exploitation attempts. The team has not yet provided a timeline for when block production will resume.

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