Taiko Security Incident Summary: $1.75M Stolen, No User Losses

PANews, July 23: Ethereum Layer2 project Taiko has released a post-incident summary of the security event that occurred on June 21, emphasizing that no users suffered any losses. The attacker stole approximately $1.75 million from the bridge and treasury, but over $11 million in funds were protected; since network recovery, all balances on Taiko have been fully backed 1:1. The attack did not compromise Taiko—the smart contracts remain functional, and zero-knowledge proof cryptography was unaffected. The attack originated off-chain, as the attacker exploited a leaked signing key and oversight to forge proofs and bypass the prover whitelist. Taiko’s defenses proved effective: the bridge’s daily limit slowed fund outflows, and the Security Committee suspended the bridge and treasury within hours, preventing further transfers.