Upbit has removed TAIKO from its trading warning list after reviewing the Ethereum layer-2 project's explanation and response to a June security breach. According to reports from Upbit, the South Korean exchange announced the change on July 24 for TAIKO/KRW, TAIKO/BTC and TAIKO/USDT markets. The decision removes the immediate risk that Upbit could end trading support under its warning process, with the exchange planning to restore TAIKO deposits and process transfers made during the suspension in order.
Upbit placed TAIKO under warning on June 22 after identifying a security incident involving systems used to issue, transfer or store the asset. As reported by Upbit, the exchange said an unexplained or unresolved breach could expose users to losses and suspended deposits while it reviewed the event and Taiko's response. The warning followed an attack on Taiko's bridge and chain-state verification system, where crafted proofs allowed unauthorized releases from its ERC20 vault on Ethereum. Security researchers estimated losses at more than $1 million, while later reports placed the amount near $1.7 million.
TAIKO reacted positively after the warning ended, with Upbit market data showing TAIKO/KRW trading as high as 132 won on July 24, gaining about 11% during the session. According to Upbit, trading volume also increased from the previous day as market participants responded to the exchange notice. The rebound followed a difficult month for the token, which reached a record low of 90.4 won on Upbit on June 25, three days after the security incident and warning designation.
Taiko's public status page now shows its mainnet sequencing, batch submission, proof submission and proof verification systems as operational, supporting the exchanges' decision to reopen services. As reported by Upbit, the exchange advised users to confirm the correct network before making new deposits, with deposits made during the suspension receiving account credit in sequence once systems reopened. Bithumb also restored withdrawals on July 3 after the network became stable, though deposits remained unavailable during the warning review period.
The warning removal does not represent a guarantee against another breach or future exchange review, as Upbit can place an asset under warning again if new security, disclosure, liquidity or operational concerns arise. According to Upbit, the exchange also reminded users that crypto assets can cause a partial or total loss of invested funds. The incident formed part of a wider series of bridge attacks during 2026, including Verus Protocol's Ethereum bridge losing more than $11.5 million and Axelar's separate $4.7 million exploit.
