AI TRENDS | Taiko Reviews June 21 Security Incident After Bridge and Vault Attack

Taiko released a review of its June 21 security incident involving its Ethereum Layer 2 network. According to Foresight News, the attack began off-chain, where the attacker used a leaked signing key and a detection gap to forge proofs and bypass its prover whitelist, while zero-knowledge proof encryption was not affected. The company said its defenses worked as intended. Daily limits on the funds bridge slowed the outflow, and the security committee suspended bridge and vault operations within hours, preventing further fund movement. Taiko said no users suffered losses. The attacker stole about $1.75 million from the cross-chain bridge and vault, while more than $11 million in funds were protected. Since the network was restored, all balances on Taiko have been backed up 1:1.