Upbit has removed Taiko (TAIKO) from its trading warning list after concluding that the Ethereum layer-2 project’s response to its June security incident addressed the concerns raised during its review.
In a notice published on July 24, the South Korean crypto exchange said the warning had been lifted for the TAIKO/KRW, TAIKO/BTC and TAIKO/USDT trading pairs. The decision also clears the way for TAIKO deposits to resume, while transfers made during the suspension will be credited in order once the service reopens.
타이코(TAIKO) 거래 유의 종목 지정 해제
타이코(TAIKO)의 거래 유의 종목 지정 해제되었습니다.
Investment warning period for TAIKO has been lifted.
🔗 Discover more: https://t.co/0DiNbKeYiT
— Upbit Korea (@Official_Upbit) July 24, 2026
The exchange cautioned that reopening deposits could lead to sharp price swings as price gaps between Korean and overseas markets narrow.
Upbit lifts Taiko warning after 32-day security review
Upbit placed TAIKO under a trading warning on June 22 after a security breach affected systems linked to the token’s issuance, transfer and storage. As part of its review process, the exchange suspended deposits while allowing spot trading to continue.
According to Upbit, Taiko later submitted details explaining the cause of the incident and the security measures implemented afterwards. After reviewing the materials, the exchange determined that the issues behind the warning had been resolved and removed the designation after 32 days.
The decision eliminates the immediate risk of TAIKO being delisted from Upbit under the exchange’s trading warning policy. Bithumb, which launched a similar review on the same day, also removed its warning on July 24 and announced plans to restore deposits.
What the Taiko incident reveal about rollup security
The attack exposed an important weakness of operational security. While rollups are designed with multiple layers of protection, a single exposed signing key was enough to bypass those safeguards and compromise Taiko’s bridge infrastructure.
The incident also highlighted an important risk for layer-2 users. Even when funds remain secure on the network itself, users rely on bridge infrastructure to move assets back to Ethereum. If that infrastructure is compromised or paused, withdrawals can be delayed until the protocol restores normal operations.
READ ALSO: South Korean Exchanges Upbit and Bithumb Expand KRW Markets With Canton and Arcium Listings
Bridge attacks continue to shape exchange risk policies
The Taiko incident highlights why exchanges often freeze deposits even when spot trading remains available. A compromised bridge can allow stolen or improperly backed assets to enter exchange wallets, creating risks for users and trading platforms.
Similar concerns emerged this year after bridge exploits affected Verus Protocol and Axelar, reinforcing stricter security reviews across the crypto industry. Although Upbit has restored support for TAIKO, the exchange noted that assets can be placed under review again if new security, operational or disclosure concerns arise.
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