Taiko Restores Cross-Chain Bridge 10 Days After $1.7M Exploit

Taiko has completed a multi-phase recovery process that included an independent security review, while its TAIKO token has surged as much as 136% in recent trading.

The Ethereum layer-2 network’s cross-chain bridge is now fully restored, just 10 days after it was shut down following a June 22 exploit.

The protocol suspended operations after the incident, which was traced to a compromised SGX signing key accidentally exposed on GitHub. The vulnerability allowed an attacker to generate fraudulent withdrawal proofs, draining around $1.7 million from the bridge and ERC20 vault contracts.

Key exposure-related exploits have remained a persistent issue across the crypto sector, contributing to hundreds of millions in losses in 2026. Still, Taiko’s rapid response has stood out, with all affected users made whole within two weeks.

In a post on X, Taiko confirmed the bridge is operational again, allowing users to transfer assets in and out of the network. The team said the recovery process is complete, the system has been fully restored, and users have been fully reimbursed. It also warned users to rely only on official updates and avoid scams, adding that a detailed post-mortem will be released soon.

The restoration effort involved several steps, including patching the vulnerability, replenishing bridge reserves to full 1:1 backing, restarting layer-2 operations, and undergoing an independent security audit.

The bridge has been reopened with conservative withdrawal limits to ensure network stability.

Markets have reacted positively to the swift recovery, with the TAIKO token rallying sharply as confidence returned following the protocol’s effective containment of the exploit and full protection of users.