Taiko Details June 21 Security Incident Triggered by Leaked Off-Chain Signing Key and Verification Lapse
AI Market Summary
Taiko disclosed a June 21 security incident where a leaked offchain signing key and verification oversight enabled forged proofs to bypass the prover whitelist, leading to about $1.75M stolen from the bridge and treasury. ZK proof encryption was not impacted, bridge limits slowed outflows, and the Security Committee halted operations quickly; Taiko reports no user losses and 1:1 backing post-recovery.
Impact level
● Medium
Affected assets
TAIKO/USDT-2.13%
AI Insight · TAIKO/USDTAI Insight
● Neutral
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Taiko, Ethereum's Layer 2 network, released a postmortem on July 23 (UTC+8) outlining the June 21 security incident, ME News reported.
According to Taiko, the exploit began off-chain. The attacker used a leaked signing key along with a monitoring blind spot to forge proofs and circumvent the prover whitelist. Taiko added that its zero-knowledge proof encryption was not impacted.
Taiko said its safeguards limited the damage. A daily bridge cap slowed potential outflows, and the Security Committee halted bridge and treasury operations within hours, blocking additional fund movements. The team said no users incurred losses.
The attacker took about $1.75 million from the cross-chain bridge and the treasury, while more than $11 million in funds were protected. Taiko said that since the network was restored, all balances on Taiko have been fully backed 1:1. (Source: Foresight News)
