Taiko Security Incident Leaves Over $11M Protected Amid $1.75M Heist

Taiko, an Ethereum Layer 2 network, recently experienced a security incident on June 21. According to an official review, the attack originated off-chain with the attacker forging proofs using leaked signature keys and an unchecked mechanism. The prover whitelist was bypassed, but zero-knowledge proof encryption remained unaffected.

The defense mechanisms were effective in containing the damage. The daily limit of the fund bridge slowed down the outflow of funds, and the Security Council suspended the operation of the fund bridge and vault within hours, stopping further fund flows. As a result, over 11 million dollars were protected, while approximately 1.75 million dollars was stolen from the cross-chain bridge and vault.

No users suffered any losses in this incident. Taiko has since restored balance on its network, with all balances backed 1:1. The company stated that it took swift action to mitigate the damage and prevent further financial loss.