Ethereum Layer 2 network Taiko halts after $1.7M bridge hack exploiting cross-chain messaging flaw

Taiko, an Ethereum Layer 2 network, stopped block production and urged users to withdraw funds after an attacker exploited its bridge to steal about $1.7 million. The attacker forged withdrawal proofs, allowing fake withdrawals without matching deposits, exploiting a leaked signing key. This vulnerability is similar to those behind over $340 million in bridge hacks this year. Taiko contained the damage quickly and plans to release a full incident report soon.