$1.7M stolen in Taiko Ethereum layer-2 bridge hack exploiting verification flaw

Taiko, an Ethereum layer-2 scaling solution, suffered a $1.7 million theft due to a security exploit in its bridge infrastructure. Hackers exploited a flaw in the validation of source signal proofs, allowing fake message authentication to unlock assets from the ERC20 vault without legitimate transactions. Nearly 2 million Taiko tokens were moved to the MEXC exchange, with $1.5 million in stolen Ether still in attacker wallets. Taiko has suspended block production, disabled compromised systems, and urged users to withdraw funds immediately while conducting a security audit.