Ethereum layer-2 blockchain Taiko has fully restored cross-chain bridge operations following a June exploit that drained up to $1.7 million in crypto assets, ending an 11-day network disruption.
Bridge Back Online After Four-Step Recovery
Taiko announced on Thursday that users could once again move funds to and from the network after completing the final stage of a four-step recovery plan. The project confirmed that all affected users had been made whole and that the bridge’s asset backing had been restored to a 1:1 ratio with assets held on Ethereum.
The team noted that conservative withdrawal quotas remain in place as a precautionary measure but said these limits are not expected to disrupt normal bridge usage. The exact size of the quotas was not disclosed.
How the June 21 Attack Unfolded
The exploit occurred on June 21 when an attacker compromised Taiko’s chain-state verification mechanism. By exploiting this flaw, the attacker was able to submit forged proofs that the protocol accepted as valid, enabling unauthorised withdrawals from its Ethereum vault. Blockchain security firms estimated total losses at up to $1.7 million.
Taiko outlined its recovery roadmap on the following Sunday, detailing a staged return to full operations. According to the project, security fixes were deployed and the chain’s finalised state was verified to contain no forged checkpoints or pending attacker claims that could still be executed.
Security Council Review and Asset Replenishment
Changes to the protocol were submitted through Taiko’s security council and independently reviewed by external security experts before being implemented. The network then replenished the bridge’s reserves to restore the 1:1 backing for all assets issued on the network.
Taiko has not disclosed how the 1:1 backing was restored or confirmed whether any portion of the stolen assets was recovered. The project said a full postmortem detailing the incident and its response will be published at a later date.
TAIKO Token Reacts to Reopening News
The TAIKO token briefly spiked to approximately $0.35 following the bridge reopening announcement before pulling back to around $0.14. The project’s decision not to reveal the mechanics behind the asset replenishment, or whether any stolen funds were recovered, leaves open questions for the community ahead of the promised postmortem report.
