Ethereum layer-2 network Taiko has resumed full operations after reopening its bridge nearly two weeks after a security breach that resulted in the theft of up to $1.7 million in crypto assets.
The project announced on Thursday that users can once again transfer assets between Ethereum and the Taiko network after completing the final phase of its recovery process. The reopening comes 11 days after the exploit forced the team to suspend bridge activity while security fixes were implemented.
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
Taiko said all affected users have been fully reimbursed. It also confirmed that the bridge has been restored with full 1:1 backing, meaning every asset on the Taiko network is matched by the corresponding asset locked on Ethereum.
How the Taiko Bridge exploit happened
The attack took place on June 21 after an attacker compromised Taiko’s chain-state verification mechanism. By exploiting the verification process, the attacker was able to submit forged proofs that were mistakenly accepted by the protocol.
This allowed unauthorized withdrawals from Taiko’s Ethereum vault, with blockchain security firms estimating that as much as $1.7 million worth of crypto assets was stolen during the incident.
The exploit prompted Taiko to halt bridge operations while it investigated the attack and worked on restoring the security of the network.
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.
RELATED: Taiko Halts Bridge Operations After $1.7 Million Exploit
Taiko completes recovery and restores bridge backing
Taiko previously outlined a four-stage recovery plan designed to safely bring the network back online. According to the team, the protocol has now completed every stage of that process.
The project said security fixes have been deployed and the finalized chain state has been reviewed to ensure it contains no forged checkpoints or attacker claims that could still be executed.
Taiko added that the upgrades were approved through its Security Council before undergoing reviews by independent security experts. The bridge was then replenished to restore its 1:1 asset backing on Ethereum before reopening to users.
What safety measures remain in place?
Although bridge services have fully resumed, Taiko said temporary withdrawal quotas remain active as an additional security measure. The project noted that the limits are conservative and are not expected to interfere with normal bridge usage, but it did not disclose the exact thresholds.
Following news of the bridge reopening, Taiko’s native TAIKO token briefly climbed to around $0.35 before pulling back to approximately $0.14.
Taiko said it will publish a detailed postmortem in the coming days explaining the exploit, the recovery process, and the steps taken to strengthen the network against similar attacks in the future.
Meanwhile, Crypto projects lost $75.87 million to major security breaches in June, with 40 significant hacks recorded during the month, according to blockchain security firm PeckShield.
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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