Taiko has restored its network and confirmed that no user funds were lost after a recent security incident that forced the Ethereum layer-2 network to suspend part of its bridge infrastructure.
The project said its recovery process is almost complete. It has fully restored the bridge’s asset backing, with every token once again matched one-to-one by its equivalent on Ethereum. The network is now live, allowing users to transfer assets, swap tokens and continue trading as normal.
Taiko is back online, and no one lost a cent.
Steps 2 and 3 are done: the bridge is fully backed again, with every asset matched 1:1 by its counterpart on Ethereum, and the network is live so you can transfer, swap and trade as normal.
One step is left, reopening the bridge to…
— Taiko.eth 🥁 (@taikoxyz) June 30, 2026
One final step remains before the recovery is complete. Taiko said it is preparing to reopen withdrawals through the bridge back to Ethereum. Until then, user funds remain secure and fully backed.
Bridge recovery follows recent compromise
The update comes days after Taiko temporarily suspended parts of its bridge following a security breach. The team acted quickly to stop further activity while investigating the incident and rebuilding the bridge’s reserves.
Although the attack disrupted normal operations, Taiko said no customer funds were permanently lost. The project restored the missing assets before bringing the network back online, allowing users to resume activity while keeping withdrawals to Ethereum temporarily paused.
Taiko also warned users to remain alert for scams. The team said it will never contact users through direct messages and confirmed there is no claim or refund website linked to the incident. Users were urged to rely only on official announcements.
Are blockchain bridges becoming the weakest link in crypto?
Blockchain networks have become much harder to break into, but bridges remain one of the few places where large amounts of assets are concentrated under a single system. Unlike the blockchains they connect, bridges often rely on additional software, validators, or smart contracts, creating more points where mistakes can happen. That is why they continue to attract attackers.
The industry’s response has also changed. A few years ago, many projects rushed to restore services after an exploit to calm users and restart activity. Today, teams are more willing to keep bridges offline for days or even weeks while they review code, rebuild reserves, and invite outside security firms to examine the system.
Instead of reopening immediately after restoring funds, the project chose to verify each stage before reconnecting its bridge to Ethereum. As more value moves across multiple blockchains, the speed of recovery is becoming less important than proving that the same vulnerability cannot be exploited twice.
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