Taiko restores bridge after US$1.7M exploit

• Taiko reopened its bridge after completing recovery work following a June exploit that drained up to US$1.7 million.
• The project said affected users have been fully reimbursed and bridge assets have been restored to 1:1 backing.
• Taiko said temporary withdrawal limits will remain while it prepares a full post-incident report.

Taiko, associated with Taiko (CRYPTO:TAIKO), has reopened its bridge and restored full network operations after completing recovery work following a June 21 exploit that resulted in losses of up to US$1.7 million.

The bridge resumed operations after an 11-day disruption, with Taiko stating it had completed security upgrades, verified the integrity of the network's chain state and restored 1:1 backing for bridged assets held on Ethereum (CRYPTO:ETH).

The project said all affected users had been made whole, while temporary withdrawal quotas remain in place as a precaution, adding that the limits are not expected to affect normal bridge usage, although their size was not disclosed.

Taiko said it will publish a detailed postmortem explaining the exploit and its response, and following the announcement the Taiko price was unchanged at the time of writing.

According to blockchain security firms, the attacker exploited Taiko's chain-state verification mechanism to submit forged proofs, allowing unauthorised withdrawals from the protocol's Ethereum vault worth up to US$1.7 million.

Taiko has not disclosed how it restored the bridge's 1:1 asset backing or whether any of the stolen funds were recovered, but said independent security experts reviewed the recovery changes before the bridge reopened.

At the time of reporting, Ethereum price was $1,698.18.