Taiko Ethereum ERC20 Vault attacked, resulting in losses exceeding $1 million
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According to Blockaid monitoring, Taiko's ERC20 Vault on Ethereum was attacked, resulting in losses exceeding $1 million. The vulnerability stems from a flaw in the source signal proof verification of the Taiko cross chain bridge. The constructed message proof is accepted as valid on Ethereum L1, without the need for a corresponding legitimate messageSent event on the Taiko source chain, allowing attackers to register and extract fraudulent cross chain messages and release assets from ERC20 Vault without authorization.