Taiko, the Ethereum layer-2 blockchain network that was compromised on June 22, resulting in a loss of funds worth $1.7 million, on Thursday, announced that it had resumed bridge operations.
Taiko says users made whole
In an announcement on Thursday, the network said that it had restored bridge transfers following asset backing replenishment. The team added that it also successfully completed security fixes during the 11-day network halt.
Taiko users can now move funds to and from the network as the team behind the protocol has completed the final stage of its four-step recovery program. Notably, all the victims of the hack have been made whole.
Importantly, the Taiko team mentioned that any remaining withdrawal limits are just momentary safety measures that have been put into place. They do not affect the protocol’s normal usage.
To recall, on June 21, an exploiter targeted Taiko’s chain-state verification mechanism, enabling forged proofs to be accepted by the protocol. As a result, the attacker was able to sign unauthorized transactions and pulled funds from the network’s Ethereum vault.
At the time, blockchain security and audit firms that the total heist was to the tune of around $1.7 million. On Sunday, Taiko team outlined their recovery plan, confirming that the chain’s finalized state no longer contains any forged checkpoints.
Taiko added that the fixes were first submitted through its security council and underwent independent security experts’ review. Later, the bridge was brought back online to ensure that assets issued on the network were backed by ETH in a 1:1 ratio.
That said, granular details about how the bridge’s 1:1 backing was restored or whether any of the assets stolen by the perpetrators were recovered are yet to be released.
Other protocols get back in action
The current year has been consistently marred by protocol exploits resulting in loss of funds worth millions of dollars. Although yearly data suggests that blockchain protocols are becoming increasingly resilient against bad actors, hacks are still commonplace in the nascent space.
Over the past month, projects that were earlier hit by hacks are starting to resume operations. For instance, on June 23, cross-chain trading protocol THORChain shared an update about restoring operations after a massive hack in May.
In the same vein, on June 17, Humanity Protocol initiated the replacement of its native H token following a network attack that led to $36 million in lost funds.
