Taiko ERC20 Vault Attacked, Losses Exceed $1 Million

Odaily Taiko's ERC20 Vault on Ethereum has been attacked, resulting in losses exceeding $1 million. The root cause of the vulnerability lies in a flaw in the verification of the source signal proof in Taiko's cross-chain bridge. Constructed message proofs are accepted as valid on Ethereum L1 without requiring a corresponding legitimate MessageSent event on the Taiko source chain, enabling attackers to register and execute fraudulent cross-chain messages and unauthorizedly release assets from the ERC20 Vault.