Taiko ERC20 Vault Attacked, Over $1 Million Lost

TAIKO8.75%
ETH1.07%
According to Blockaid, Taiko's ERC20 Vault on Ethereum was attacked, resulting in losses exceeding $1 million. The vulnerability stemmed from a flaw in Taiko's cross-chain bridge's source signal proof verification. Fabricated message proofs were accepted as valid on Ethereum L1 without corresponding legitimate MessageSent events on Taiko's source chain, enabling attackers to register and extract fraudulent cross-chain messages and unlawfully withdraw assets from the vault.
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