Taiko to gradually restart chain after restoring bridge collateral

Ethereum Layer 2 project Taiko announced via X its plan to gradually restart its chain after blocking the path of a recent exploit and completing a review by external security experts. The project will first deploy a fix, confirm the final chain state, and replenish its bridge collateral to ensure all Layer 2 (L2) assets are verifiably backed 1:1 on-chain. Following this, L2 transfers, swaps, and transactions will be re-enabled. The bridge itself will be reactivated through a Security Committee proposal once block finalization returns to normal and network stability is confirmed, initially with conservative withdrawal limits. The project team stated that there would be no loss of user funds. Previously, on June 22, Taiko announced it had identified the root cause of a $1 million exploit in one of its vaults and would work to restart the chain within days.