Taiko Urges Immediate Withdrawal of Bridge Funds After Security Breach
Taiko has alerted users to withdraw funds from all bridges on its Ethereum layer-2 network following a security breach that compromised its chain state verification mechanism. BlockSec Phalcon estimates losses of over $1.7 million due to the incident, which potentially involved an exposed signing key, according to Decrypt.
The blockchain protocol Taiko has issued a warning to its users, urging them to withdraw funds from all bridges associated with its Ethereum layer-2 network due to a security breach. The incident, which saw more than $1.7 million reportedly stolen, was caused by a compromise of the chain state verification mechanism.
On June 22, 2026, Taiko announced that the foundational security assumptions governing its bridges can no longer be trusted, following concerns about the network's proof verification infrastructure. The developers stated they are collaborating with their Security Council and ecosystem partners to manage the situation by pausing affected systems and exploring both technical and legal measures.
In their notification, Taiko directly advised users: "We strongly advise all users to withdraw their funds from all bridges deployed on Taiko immediately." The platform, established as an Ethereum layer-2 solution employing zero-knowledge rollups, aims to enhance transaction efficiency while remaining compatible with Ethereum.
While the specific cause of the security breach remains undisclosed, initial analysis from security firm BlockSec Phalcon indicates that the attacker potentially exploited an exposed Raiko SGX enclave signing key available on GitHub. This exposed key might have allowed malicious actors to register fraudulent signing instances and generate fake proofs accepted by Taiko’s verification contracts.
This enabled an attacker to produce a forged message from the bridge, resulting in the unauthorized release of assets from the protocol's ERC20Vault.
As the Taiko team works to resolve the issues stemming from the breach, users are encouraged to monitor the situation closely and remain vigilant regarding the security of their funds.
Summary based on original reporting by Jason Nelson at Decrypt, originally published Jun 22, 2026. SolanaWire does not republish source content.
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