Taiko, an Ethereum layer-2 network, halted block production and told users to pull their funds after an attacker exploited
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The team estimated losses at about $1.7 million before it stopped the outflows.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- Forged cross-chain messages drained $292 million from Kelp DAO's bridge in April and $11.4 million from the Verus-Ethereum bridge
- Bridges have produced more than $340 million in losses across at least 14 exploits in 2026, making it the costliest target in crypto
- The team estimated losses at about $1.7 million before it stopped the outflows
Summary
Taiko, an Ethereum layer-2 network, halted block production and urged users to withdraw funds after an attacker exploited its bridge to steal about $1.7 million. The attacker forged cross-chain proofs so that fake withdrawal requests were accepted on Ethereum without matching deposits on Taiko, draining the bridge and its token vault before the team froze activity. While the dollar loss was relatively small, the exploit used the same cross-chain messaging flaw behind more than $340 million in bridge hacks this year, and Taiko said it will release a full incident report.