Data compiled by Woofun AI shows that Ethereum Layer 2 protocol Taiko disclosed a compromise in its chain state verification mechanism, rendering the security assumptions of all deployed bridges unreliable. The project urged immediate fund withdrawals and suspended affected systems while coordinating with partners to contain the incident. Security firm Blockaid identified the root cause as a flaw in how the bridge validates source signals, allowing attackers to submit fraudulent message proofs on Ethereum without legitimate Taiko chain verification.

This vulnerability enabled the unauthorized release of assets from the ERC20 treasury. Blockaid estimates minimum losses at $1 million, whereas Lookonchain and PeckShield project total stolen value could reach $1.7 million. PeckShield noted that the attacker transferred approximately 1.99 million TAIKO tokens, valued at around $189,000, to MEXC.

Meanwhile, Arkham data indicates the attacker's wallet holds approximately $1.5 million in assets, primarily in Ether.