Taiko Says Ethereum Layer-2 Security Incident Will Not Cause User Fund Losses

Taiko said a recent security incident will not result in any loss of user funds and that it plans to restore full collateralization of bridged assets before reopening its bridge. According to ChainCatcher, Taiko said bridged assets are currently undercollateralized, and it will complete additional collateral deposits before the bridge reopens to ensure every user balance is backed 1:1, matching the status before the incident. Taiko said it has taken cautious measures since the incident, including limiting the scope of impact, identifying the cause, and working with its board to develop a plan to protect user assets. The company said its CEO has submitted a formal report to relevant authorities in Singapore and that the team will cooperate with efforts to identify those responsible. Taiko said users do not need to take any action at this time. It added that it is testing completed fixes and will reopen the chain and bridging services as soon as security is confirmed. Taiko also warned users to be alert to scams, saying the team will not proactively send direct messages and that any links claiming to offer claims or refunds are fraudulent.