Upbit has removed Taiko (TAIKO) from its trading warning list after reviewing the Ethereum layer-2 project's explanation and response to a June security breach, clearing the way for deposits to resume across three spot markets.

The South Korean exchange—one of the largest digital asset platforms in Korea by trading volume—announced the decision on July 24, 2026, applying it to the TAIKO/KRW, TAIKO/BTC, and TAIKO/USDT pairs. The move eliminates the immediate risk that Upbit could terminate trading support under its warning process. Upbit also said it will restore TAIKO deposits and process transfers made during the suspension in the order they were received.

타이코(TAIKO) 거래 유의 종목 지정 해제
타이코(TAIKO)의 거래 유의 종목 지정 해제되었습니다.
Investment warning period for TAIKO has been lifted.
🔗 Discover more:

— Upbit Korea (@Official_upbit) July 24, 2026

Upbit cautioned that price differences between Korean and overseas exchanges could produce sharp movements when deposits reopen.

Upbit Concludes Review After Project Response

Upbit placed TAIKO under warning on June 22 after identifying a security incident involving systems used to issue, transfer, or store the asset. The exchange stated that an unexplained or unresolved breach could expose users to losses and suspended deposits while reviewing the event and Taiko's response.

In its July 24 notice, Upbit said Taiko submitted information covering the cause of the breach and its subsequent security work. The exchange reviewed those materials and determined that "the reason for the trading warning has been resolved." Upbit did not publish the technical documents or specify the exact controls that satisfied its review.

The review period lasted 32 days. Throughout that time, Upbit kept its three spot markets open, allowing users to trade existing balances while blocking new token inflows until the security assessment concluded. Bithumb followed a similar review schedule after placing TAIKO under warning on the same date.

June Exploit Forced Taiko to Halt Network Activity

The warning followed an attack on Taiko's bridge and chain-state verification system. Bridges are among the most frequently targeted components in decentralized finance because they hold large pools of locked assets on one blockchain to back tokens on another, making them high-value attack surfaces. Taiko instructed users to withdraw funds from bridges after crafted proofs enabled unauthorized releases from its ERC20 vault on Ethereum. The project also asked centralized exchanges to halt TAIKO deposits and stopped new block production during its response.

Security researchers initially estimated losses at more than $1 million, with later reports placing the figure near $1.7 million. Blockaid reported that flawed source-signal proof checks allowed the attacker to submit withdrawal messages without corresponding events on Taiko. Other researchers examined whether an exposed signing key enabled the attacker to generate proofs that the Ethereum-side verifier accepted.

Taiko contained the unauthorized withdrawals after pausing affected systems and coordinating with its Security Council and partners. The team published attacker addresses and stated it would pursue both technical and legal measures. It did not immediately provide a full public timeline for restoring each affected bridge.

Deposits Return as Network Services Stabilize

Bithumb also suspended TAIKO deposits and withdrawals on June 22 because Taiko had stopped block production. The exchange restored withdrawals on July 3 after the network stabilized, though deposits remained unavailable while the warning review continued. Bithumb likewise removed its TAIKO warning on July 24 and scheduled deposits to resume.

Taiko's public status page now lists its mainnet sequencing, batch submission, proof submission, and proof verification systems as operational. That status supports the exchanges' decision to reopen services, though it does not eliminate the need for continued monitoring.

Upbit stated that transfers sent during the deposit suspension will appear in user accounts after service resumes. The exchange advised users to confirm the correct network before making new deposits, noting that transactions sent through unsupported networks may not reach exchange accounts. Deposits made during the suspension will receive account credit in sequence once systems reopen.

TAIKO Rises After Delisting Threat Clears

TAIKO reacted positively after the warning ended. Upbit market data showed TAIKO/KRW trading as high as 132 won on July 24, with the pair gaining approximately 11% during the session. Trading volume also increased from the previous day as market participants responded to the exchange notice.

The rebound followed a challenging month for the token. TAIKO reached a record low of 90.4 won on Upbit on June 25, three days after the security incident and warning designation. Even after the July recovery, the token remained far below its June 2024 record high on the exchange.

The warning removal does not guarantee against another breach or future exchange review. Upbit can place an asset under warning again if new security, disclosure, liquidity, or operational concerns arise. The exchange also reminded users that crypto assets can result in partial or total loss of invested funds.

Broader Context of 2026 Bridge Attacks

The Taiko incident formed part of a wider series of bridge attacks during 2026. Verus Protocol's Ethereum bridge lost more than $11.5 million after forged transfer data passed its checks. Axelar also disabled Secret Network routes following a separate $4.7 million exploit.

These cases illustrate why exchanges can suspend deposits even when spot trading remains open. A compromised bridge or chain can allow attackers to send assets lacking valid backing or move stolen tokens into exchange accounts. Deposit controls give exchanges time to assess the network and prevent disputed balances from entering their systems.

Upbit's decision closes the current warning review rather than the broader security process. Taiko still needs to maintain its bridge, proof, and validator protections while supporting exchanges that reconnect deposits. Upbit advised traders to monitor for rapid price movements as Korean and overseas markets reconnect.

Source: crypto.news