Bithumb suspends TAIKO transfers after network issue

• Bithumb has temporarily suspended deposits and withdrawals of Taiko following issues affecting the project's mainnet network.
• The move comes after Taiko disclosed a bridge-related security incident that resulted in losses estimated at up to US$1.7 million.
• The exchange said services will resume once network stability and security have been verified.

Bithumb has temporarily halted deposits and withdrawals of Taiko (CRYPTO:TAIKO) after identifying issues affecting the blockchain project's mainnet network.

The suspension follows Taiko's recent disclosure of a compromise involving its chain state verification mechanism, which security researchers estimated resulted in unauthorised withdrawals of between US$1 million and US$1.7 million.

“Deposits and withdrawals will remain paused until the issue is resolved and normal network operations are confirmed,” Bithumb said in a notice to users.

The South Korean exchange said the measure was taken to protect customer assets while investigations into the network issue continue, though it did not specify the precise technical cause of the disruption.

Bithumb stated that only on-chain deposits and withdrawals are affected, while trading of TAIKO on the platform is expected to continue as normal during the suspension period. Following the announcement the TAIKO price was unchanged at $0.00.

Taiko is an Ethereum layer-two network that uses zero-knowledge rollup technology to improve transaction efficiency and scalability on Ethereum (CRYPTO:ETH).

The suspension adds to growing scrutiny of the network after the recent bridge exploit, with exchanges and infrastructure providers monitoring the situation while awaiting further updates from the Taiko team.

At the time of reporting, Taiko price was $0.0752.