Taiko Token Drops 10% After Bridge Exploit Halts L2 Network

Taiko's native token fell 10% after the Ethereum Layer 2 network halted block production following a bridge exploit that drained roughly $1.7 million. The team urged immediate withdrawals from all bridges and asked exchanges to suspend TAIKO deposits while investigators traced forged withdrawal proofs. Security researchers later identified a likely exposed Raiko signing key on GitHub as the root cause, echoing cross-chain messaging flaws behind multiple 2026 bridge attacks. Losses were contained within hours, but the incident highlights ongoing risks across the L2 ecosystem.