Taiko Details June 21 Security Incident: $1.75M Taken, User Funds Unaffected
AI Market Summary
Taiko disclosed a June 21 security incident in which an attacker used an off-chain leaked signing key to forge proofs, bypass the prover whitelist, and steal about $1.75M from the bridge and treasury. Taiko states no user losses, contracts and ZK cryptography were unaffected, and balances are now fully backed 1:1. Rapid suspension and bridge daily limits contained the damage, but the event keeps operational risk in focus.
Impact level
● Medium
Affected assets
TAIKO/USDT-2.52%
AI Insight · TAIKO/USDTAI Insight
● Neutral
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PANews, July 23 — Ethereum Layer2 project Taiko published a post-incident report on the June 21 security event, stating that no users incurred losses. The attacker siphoned about $1.75 million from the bridge and treasury, while more than $11 million in funds were safeguarded. Taiko said that since the network was restored, all balances on Taiko have been fully backed on a 1:1 basis.
Taiko noted the exploit did not compromise the protocol itself: smart contracts continued to operate normally and zero-knowledge proof cryptography was not impacted. The breach originated off-chain, where a leaked signing key and an operational oversight enabled the attacker to forge proofs and bypass the prover whitelist.
Taiko added that existing controls helped limit the damage. The bridge's daily cap slowed the outflow of funds, and the Security Committee suspended both the bridge and treasury within hours, blocking additional transfers.
