Taiko reopens bridge after $1.7M exploit, users reimbursed

Taiko has reopened its bridge after a $1.7M exploit, fully reimbursed users, restored 1:1 asset backing, and resumed operations under safeguards. A full technical report is pending.

Taiko, an Ethereum layer-2 protocol, has reopened its cross-chain bridge after a late June exploit that resulted in the theft of approximately $1.7 million and impacted thousands of users. The incident was traced to a compromised signing key, which enabled unauthorized withdrawals. In response, Taiko halted operations, paused asset transfers, and launched a multi-stage recovery plan. This included patching vulnerabilities, replenishing reserves to ensure full 1:1 asset backing, and commissioning an independent security review. After 11 days, the bridge was reopened, with the team confirming that all affected users were fully reimbursed. While a detailed technical report is still pending, Taiko has restored normal operations under controlled quotas and continues to update its community. The TAIKO token experienced a notable price surge following the restoration.