Taiko Pauses Ethereum Layer-2 Network After $1.7M Bridge Exploit, Token Dives

Taiko, an Ethereum layer-2 scaling solution, paused its network on June 22, 2026, following a bridge exploit that resulted in the loss of approximately $1.7 million. The attacker manipulated withdrawal proofs, a security flaw that has been behind several high-profile bridge hacks in 2026, including the largest ones this year.

The exploit was quickly contained, limiting the damage. Taiko's team acted swiftly to halt the network, preventing further losses. The incident highlights the ongoing risks associated with crypto bridges, which have been frequent targets for hackers due to their complex security mechanisms.

Following the news, Taiko's native token dropped roughly 10%, reflecting investor concern about the security breach. The incident serves as a reminder of the importance of security in decentralized finance (DeFi). While layer-2 solutions like Taiko aim to improve scalability and reduce costs on Ethereum, they are not immune to vulnerabilities. Users should remain vigilant and consider the risks when interacting with DeFi platforms and bridges.

Taiko has not yet provided a timeline for resuming operations, but the team is likely working to address the vulnerability and restore confidence in the network. Users should monitor official announcements for updates on the network's status and any measures being taken to enhance security. Read more → https://www.coindesk.com/tech/2026/06/22/taiko-halts-its-ethereum-layer-2-network-after-a-bridge-exploit-token-dives-10