Taiko Restarts Cross-Chain Transfers After $1.7M Security Breach

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

The Ethereum layer-2 network has fully restored its cross-chain bridge, just 10 days after suspending operations in the wake of a June 22 exploit.

The protocol shut down the bridge after the attack was traced to a compromised SGX signing key that had been mistakenly exposed on GitHub. The vulnerability allowed the attacker to forge withdrawal proofs and drain roughly $1.7 million from the bridge and ERC20 vault contracts.

Exploits linked to leaked or exposed keys continue to be a recurring weakness across the crypto industry, contributing to hundreds of millions in losses in 2026. Even so, Taiko’s response has stood out for its speed, with all affected users fully compensated within two weeks.

In an update posted on X, Taiko confirmed the bridge is back online and users can once again move funds between networks. The team said the recovery process is complete, the system has been fully restored, and all users have been made whole. It also warned users to rely only on official announcements and avoid scams, with a detailed post-mortem expected soon.

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

The bridge has reopened with conservative withdrawal limits in place to ensure stability during the initial phase of relaunch.

Markets have reacted positively to the swift resolution, with TAIKO surging as confidence returned following the protocol’s rapid containment of the exploit and full user reimbursement.