Taiko Says It Is Ready to Restore Network, No User Funds Will Be Lost

Taiko, an Ethereum layer-2 network, said it will restore its network in stages.

In a post on X on June 29, Taiko said it was ready to come back online. It said the attack vector used on June 21 had been blocked and that fixes had been reviewed by independent security experts.

The company plans a four-stage recovery process after confirming the safety of user funds and the stability of the network.

It will first apply security patches and verify that the chain’s final state is valid. That includes checking that no forged records remain and that the attacker has no claimable rights left. The process will go through Taiko’s security council.

Taiko will then replenish bridge reserves. A bridge is used to move assets between different blockchains. The company said it will ensure layer-2 assets are backed one-for-one and that anyone can verify that on-chain.

In the next stage, Taiko will reopen network functions. It plans to resume asset transfers, swaps and trading on the layer-2 network.

Finally, it will reopen the bridge after confirming the network is operating stably. The bridge restart will proceed through a proposal from the security council. Once that process is complete, users will be able to move funds into and out of the Taiko network.

As an added safeguard, Taiko said it will initially impose conservative withdrawal limits. It said those limits should not restrict users’ ability to move assets.

Taiko said no user will lose funds and that it will return stronger than before.

The company also urged users to be cautious of fraudulent notices. It added that Taiko does not initiate contact through direct messages and does not operate a separate claims website.