Taiko sets four-step restart plan after June 21 bridge attack

Taiko says it is ready to bring its Ethereum layer-2 network back online after a June 21 security breach.

The project says the attack path is now closed, outside security experts have reviewed the fixes, and users will not lose funds.

The update marks a shift from emergency response to staged recovery. Taiko plans to restore the chain, back the bridge assets, reopen network activity and then unpause bridge operations under limits.

Taiko says attack path is closed

Taiko said the June 21 attack path has been closed after a review by independent security experts. The team said it now has a staged plan to restore the chain while protecting user funds and network stability.

The project said the first step will deploy the fixes and confirm the chain’s finalized state. Taiko also said the review must confirm there are no forged checkpoints or attacker claims still reachable.

The update follows an earlier warning after Taiko confirmed a compromise of its chain-state verification mechanism. As previously reported, the project had urged users to withdraw bridge funds and asked exchanges to pause TAIKO deposits while the team contained the issue.

Blockaid had linked the attack to flawed source-signal proof checks. The security firm said crafted message proofs were accepted on Ethereum without matching valid events on Taiko, allowing unauthorized releases from the ERC20 Vault.

Bridge backing comes before full access

Taiko said the second step will replenish the bridge so every L2 asset is backed 1:1. The team said users will be able to verify the backing on-chain.

This step matters because bridge users rely on the claim that assets on the L2 match assets held or locked elsewhere. If backing becomes weak after an exploit, users may lose trust in wrapped or bridged balances.

Taiko said the Security Council will handle key restart actions. The council will also submit the proposal that unpauses the bridge once the chain finalizes properly and the network remains stable.

The team said it will reopen the bridge with conservative withdrawal quotas. Taiko said it does not expect the limits to stop users from moving assets, but it will use them as an extra safety guard.

Network activity returns in stages

After the fixes and bridge backing steps, Taiko plans to bring network functions back online. Transfers, swaps and trading on L2 will return before the bridge fully opens.

That order gives the team time to watch the chain under normal activity before allowing free movement to and from the bridge. It also lowers the risk of a rushed restart after a security breach.

Taiko said, “No user will lose funds.” The team also warned users that there is no claim site and that the project will never contact users first through direct messages.

That warning targets phishing risks that often follow crypto exploits. Fake recovery links, support accounts and claim pages can lead users into signing harmful transactions or exposing wallet details.

Bridge security remains under pressure

The Taiko breach adds to a series of recent bridge security failures. A Verus Protocol bridge exploit drained more than $11.5 million after attackers used forged cross-chain transfer messages.

Axelar also disabled Secret Network bridge routes after a $4.7 million exploit. Aztec Connect later lost about $2.1 million after an old contract suffered a verification mismatch.

A separate report said cross-chain bridge exploits caused $28.6 million in May losses, or about 42% of the monthly total. That figure shows why bridge proof checks and recovery plans now face close review.

Taiko’s next test is execution. The project must restore activity, prove 1:1 backing, reopen withdrawals safely and keep users away from scam recovery channels.