Hacker Compromises Taiko L2 Network

The Taiko Layer 2 solution team has reported a serious security breach affecting its blockchain's state verification mechanism. This incident, confirmed on June 22, has raised alarms regarding the reliability of all bridges operating on the Taiko network.

⚠️ Security Notice

1/2: We confirm a compromise of Taiko's chain state verification mechanism. The security assumptions of all bridges deployed on Taiko can no longer be relied upon.

We are actively coordinating with the Security Council and ecosystem partners.

— Taiko.eth 🥁 (@taikoxyz) June 22, 2026

In response to the breach, the developers have advised users to immediately withdraw their funds from any bridge protocols on Taiko. Additionally, they are collaborating with the Security Council and have requested that centralized exchanges halt deposits for the TAIKO token until the situation is resolved.

Preliminary estimates from Lookonchain suggest that the hack resulted in losses of around $1.7 million, primarily involving stolen native TAIKO tokens and various wrapped ETH assets.

— Lookonchain (@lookonchain) June 22, 2026

The aftermath of the breach has seen the TAIKO token price plummet by 11% in just one day, dropping from $0.09 to $0.07.

This incident follows another recent exploit, where the Axelar blockchain project revealed a breach that allowed an attacker to exploit a vulnerability, resulting in approximately $4.67 million in stolen funds.