Taiko pauses Ethereum layer-2 after bridge exploit drains about $1.7 million, TAIKO drops over 20%

Taiko halted block production on its Ethereum layer-2 network after an attacker exploited a bridge mechanism to steal about $1.7 million. The incident triggered a sharp selloff in the TAIKO token, raising concerns among users and investors. The team said it is investigating the breach and will implement safeguards before resuming normal operations.