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Ethereum layer2 Taiko chain state verification mechanism breached, $1.7 million loss

Ethereum-based layer2 network Taiko confirmed a breach of its chain state verification mechanism, The Block reported. Taiko said all bridges deployed on the protocol were no longer safe and strongly urged users to withdraw funds immediately. It asked centralized exchanges to suspend deposits of the Taiko native token until further notice. Taiko later said the exploit was blocked and withdrawals via its layer1 bridge and ERC20 vault were fully halted.