Upbit Clears Taiko for Trading After Bridge Exploit Review

Upbit placed the Ethereum layer-2 project under observation on June 22 following an attack on its bridge and chain-state verification system. The exploit, which researchers estimated resulted in losses between $1 million and $1.7 million, forced Taiko to halt block production and prompted centralized exchanges to block inflows to prevent the deposit of compromised assets. During the month-long suspension, Upbit allowed existing balances to trade while keeping deposits offline to assess the project's technical response.

Taiko provided documentation regarding the breach and subsequent security reinforcements, leading Upbit to declare the issues resolved. While the exchange did not disclose specific technical controls implemented by the team, Taiko’s public status page now reports that its sequencing, batch submission, and proof verification systems are operational. Bithumb, which had initiated a similar review on the same date, also lifted its warning on July 24. Following the announcement, TAIKO saw an 11% increase in value on Upbit, recovering from a record low set in late June. Upbit cautioned that price volatility may persist as deposit services fully resume and liquidity aligns with international markets.