- Taiko has reopened its cross-chain bridge around 10 days after a $1.7 million exploit.
- All affected users have been reimbursed, according to the protocol.
- The bridge has resumed operations with 1:1 asset backing and temporary withdrawal limits.
- The reopening follows security fixes, an independent review, and restoration of bridge reserves.
Ethereum layer-2 network Taiko has reopened its cross-chain bridge after completing a multi-stage recovery process following a security breach that resulted in the theft of approximately $1.7 million in crypto assets.
Step 4 is done. The bridge is open.
You can move funds to and from Taiko again. Our response is complete: the network is fully restored and every user is whole. Any limits in place won’t affect normal use.
A reminder: we’ll never DM you first, and there’s no claim site. Only… https://t.co/TuDHqmPmVr
— Taiko.eth 🥁 (@taikoxyz) July 2, 2026
The bridge resumed operations roughly 10 days after the exploit forced the protocol to suspend services and investigate the incident. Taiko said affected users have been fully reimbursed and that bridge reserves have been restored to a 1:1 asset backing before the reopening. The protocol has also introduced conservative withdrawal limits during the initial phase of operations while monitoring network activity and system performance.
Recovery Follows June Security Incident
The exploit was disclosed on June 22 after attackers compromised Taiko’s chain-state verification mechanism, allowing forged withdrawal proofs to trigger unauthorized asset releases from the protocol’s bridge and ERC-20 vault. Following the attack, Taiko halted bridge operations, paused affected systems, and worked with security partners to investigate and contain the breach.
The project announced that no user funds would be lost and committed to restoring full collateralization before bringing the bridge back online. During the recovery period, the team patched the vulnerability, replenished bridge reserves, completed independent security reviews, and tested the upgraded infrastructure before resuming operations.
Focus Shifts to Long-Term Security
The reopening marks the latest milestone in Taiko’s response to one of several decentralized finance security incidents reported during June 2026. Cross-chain bridges have remained a frequent target for attackers because they secure assets moving between blockchain networks, placing greater emphasis on bridge verification systems and operational safeguards.
Following the restoration announcement, Taiko’s native token recorded a strong market reaction as users regained access to bridge services. The project has also confirmed that it plans to publish a detailed post-incident report outlining the root cause of the exploit, the remediation process, and additional measures designed to strengthen the security of its Ethereum layer-2 ecosystem.
At the time of writing (12:14 pm UTC), Taiko (TAIKO) traded at $0.1509, maintaining strong upward momentum in the market. The token was up 14.1% over the past 24 hours and had surged 150.08% over the last seven days, highlighting significant weekly gains, according to CoinMarketCap.
