Taiko Warns Users to Withdraw Bridge Funds After $1.7M+ Security Breach

Taiko, an Ethereum layer-2 network, urged users to withdraw funds from all bridges on Sunday (June 21) after confirming a compromise of its chain state verification mechanism. The team said the security assumptions underlying all bridges on Taiko could no longer be relied upon and advised immediate withdrawal.

According to blockchain security firm BlockSec Phalcon, the attack resulted in losses exceeding $1.7 million. BlockSec attributed the breach to an exposed Raiko SGX enclave signing key that had been publicly accessible on GitHub. The compromised key may have allowed attackers to register attacker-controlled SGX instances and generate fraudulent proofs accepted by Taiko's verification contracts, enabling the theft of Ethereum-based assets.