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 did the Taiko Bridge exploit happen?
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.
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.
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