Taiko warns users to pull funds from bridges after chain-state verification mechanism compromised

Taiko said in a security notice that it has confirmed its chain-state verification mechanism was compromised, meaning the security assumptions underpinning all bridges deployed on Taiko can no longer be trusted. The team urged users to immediately withdraw funds from affected bridges and asked centralized exchanges to halt TAIKO deposits until further notice. Earlier, security firm Blockaid reported that Taiko's ERC20 Vault on Ethereum was attacked, with losses topping $1 million. A preliminary review attributed the issue to a flaw in Taiko's bridge SourceSignal proof verification mechanism.