Taiko Bridge Exploited for Up to $1. 7M in DeFi Hack
Taiko, an Ethereum layer-2 blockchain, has urged its users to withdraw assets from the network’s bridges after an exploit on one of its bridge protocols saw attackers make off with $1. 7 million in the latest. . .
Taiko, an Ethereum layer-2 blockchain, has urged its users to withdraw assets from the network’s bridges after an exploit on one of its bridge protocols saw attackers make off with $1. 7 million in the latest decentralized finance hack this month. “We have confirmed a compromise of Taiko’s chain state verification mechanism,” Taikopostedto X early on Monday. “As a result, the security assumptions of all bridges deployed on Taiko can no longer be relied upon. ”“We strongly advise all users to withdraw their funds from all bridges deployed on Taiko immediately,” it added. It is the latest in a series of crypto protocol exploits this month, which now number at least 23,accordingto DeFiLlama. TheHumanity Protocoland Syscoin Bridge, which lost over $30 million and $8 million, respectively, have been the largest two exploits so far in June. Source:TaikoTaiko said it was coordinating partners to contain the incident and had paused affected systems. Crypto security firm Blockaidsaidthat the root cause appears to be a flaw in how the Taiko bridge validated source signals. It said that message proofs were accepted as valid on Ethereum without corresponding legitimate proofs on the Taiko blockchain. “This allowed the attacker to register and later retrieve fraudulent bridge messages, resulting in unauthorized asset releases from the ERC20 vault,” Blockaid said. Blockaid estimated that at least $1 million had been stolen, while Lookonchain and PeckShieldsuggestedthe value of assets stolen could be as high as $1. 7 million. The exploiter has already transferred 1. 99 million Taiko (TAIKO) tokens worth around $189,000 to MEXC, stated PeckShield. TAIKO is currently trading down 98% from its 2024 peak at $0. 084,accordingto CoinGecko. Related:Secret Network bridge exploited for $4. 7M with ‘infinite mint’ bugBlockchain intelligence firm ArkhamshowsTaiko exploiter wallets holding around $1. 5 million, primarily in Ether (ETH). The Taiko exploiter account holds more than $1. 5 million in ETH. Source:Arkham IntelligenceExploits in June are mounting upThe attack comes just days after the discovery on Friday of a smart contract exploit on the Secret Network, which resulted in thetheft of $4. 67 millionworth of assets. On Saturday, around $1. 1 million wasdrainedfrom the OLPC/LABUBU liquidity pool on PancakeSwap. LABUBU is a memecoin inspired by the popular toys of the same name. Other notableexploitsin June includeAztec Connect, RetoSwap, Raydium AMM, and the largest one so far this month, Humanity Protocol. Magazine:Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market MovesCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’sEditorial Policyand aims to provide accurate and timely information. Readers are encouraged to verify information independently.