Taiko, the Ethereum layer 2 blockchain, has urged users to withdraw their funds from all bridges deployed on the network immediately.

This follows a confirmation of a security breach involving the network’s chain state verification mechanism.

We have confirmed a compromise of Taiko’s chain state verification mechanism. As a result, the security assumptions of all bridges deployed on Taiko can no longer be relied upon.

The team confirmed they are actively working with the Security Council and various ecosystem partners to contain the incident, pause the affected system wherever possible, and take both technical and legal actions.

So far, there’s no information on the amount of funds in jeopardy or if something has been stolen.

According to data from PeckShield, the exploit resulted in a loss of $1.7 million, while the attacker has already transferred 1.99 million TAIKO tokens, worth slightly less than $200K, to MEXC.

Source: CryptoPotato