Taiko Reopens Bridge After $1.7 Million Exploit, Says All Users Made Whole

Ethereum layer-2 network Taiko has reopened its bridge and resumed normal operations after completing the final stage of a four-step recovery plan. The reopening ends an 11-day disruption that began after a June 21 exploit drained up to $1.7 million from the network’s Ethereum vault.

Exploit Exploited Chain-State Verification Flaw

The attack occurred after a hacker compromised Taiko’s chain-state verification system, allowing forged proofs to be accepted and enabling unauthorized withdrawals. Taiko said it has now made all affected users whole and confirmed the fix was reviewed by its security council and independent experts before deployment.

Bridge Backing Restored, Withdrawal Limits Added

Before reopening, Taiko replenished the bridge to ensure assets issued on the network remained fully backed 1:1 by funds held on Ethereum. The project also introduced temporary withdrawal quotas as a precaution, though it did not disclose the specific limits, saying they should not affect normal usage.

Token Price Reacts To Reopening

TAIKO briefly jumped to about $0.35 following the announcement before falling back to roughly $0.14. Taiko has not detailed how the bridge backing was restored or whether any stolen funds were recovered, but said a full postmortem on the incident will be published.