Woofun AI reports that Ethereum Layer 2 scaling project Taiko has announced a gradual blockchain restart after successfully blocking an exploit and completing an external security review. The project confirmed that no user funds were lost during the incident despite a $1 million vulnerability identified in one of its vaults on June 22. Taiko will first deploy a technical fix to address the vulnerability before confirming the final state of the chain. A critical prerequisite involves replenishing bridge collateral to ensure all Layer 2 assets remain verifiably backed 1:1 on Ethereum's mainnet. Once this collateral is restored, the network will re-enable L2 transfers, swaps, and general transactions.

Woofun AI data shows the bridge reactivation depends on a Security Committee proposal following the return of normal block finalization and confirmed network stability. Initially, withdrawal limits will be set conservatively to mitigate any residual risk while the system stabilizes. The project team acted quickly to block the exploit's path and engaged external security auditors to conduct a thorough review of the infrastructure. This measured recovery sequence marks a significant operational milestone for the protocol following the June 22 disclosure.