The Ethereum layer 2 blockchain Taiko has reopened its bridge and is back in full operation after a June exploit that drained the amount to $1.7 million.
announced so that users can move funds in and out of the network again once the final stage of the four-stage recovery plan is completed. The draft states that all affected users are whole and that any remaining withdrawal limits are ephemeral protections that do not affect normal employ.
The reopening ends 11 days of disruption resulting from safety patches and the restoration of 1:1 bridge protection.
The exploit occurred on June 21 after an attacker compromised Taiko’s chain health verification mechanism, allowing it to accept forged proofs and enabling unauthorized withdrawals from the Ethereum vault. Blockchain security companies said up to $1.7 million worth of crypto assets were taken.
Seven-day Taiko token chart. Source: CoinGecko
Its TAIKO token briefly rose to around $0.35 after the bridge reopened, before falling to around $0.14.
Taiko restores the bridge’s safety before reopening
on Sunday it unveiled a recovery plan, saying it would take the network back through four stages. The project implemented fixes and verified that the final chain state did not contain spoofed checkpoints or attacker claims that could still be executed.
According to Taiko, the changes were reported through its security board and reviewed by independent security experts. The network then completed the bridge to ensure that the assets issued on the network were backed 1:1 by assets held in Ethereum.
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Taiko has also introduced conservative withdrawal limits as an additional precaution, saying the limits are not intended to prevent users from conducting bridge transactions. However, she did not disclose the amounts.
Taiko did not disclose how the 1:1 coverage of the bridge was restored or whether any of the stolen assets were recovered. Project officials said they would release a full autopsy detailing the incident and response.
