Taiko Says Bridge Is Undercollateralized After Security Incident, Plans Full Asset Replenishment

Taiko said a previous security incident will not result in losses of user funds, but its cross-chain bridge is currently undercollateralized and will remain closed until assets are fully replenished. According to Foresight News, Taiko said it will complete a 100% replenishment of assets before reopening to ensure balances are backed 1:1. The company added that its CEO has submitted a formal report to Singapore authorities and said the team will cooperate with efforts to pursue accountability. Taiko said it is testing a fix and is close to safely restarting the mainnet and restoring cross-chain functionality.