MarketsTaiko Successfully Restores Cross-Chain Bridge Following $1.7 Million Hack
The protocol has executed a comprehensive recovery process, which included an independent security assessment. The TAIKO token has seen a remarkable increase of up to 136% in recent trades.
By Omkar Godbole|Edited by Jamie Crawley Jul 2, 2026, 8:35 a.m. 1 min read
- Taiko has reopened its Ethereum layer-2 cross-chain bridge just 10 days after a $1.7 million exploit.
- The protocol completed a multi-stage recovery that included an independent security review.
- All affected users have been made whole, the protocol said.
Taiko, an Ethereum layer-2 scaling solution, has restored its cross-chain bridge merely 10 days post a hack that occurred on June 22.
The protocol had to cease operations following the breach, which was attributed to a compromised SGX signing key that was inadvertently exposed on GitHub. This vulnerability allowed the hacker to fabricate withdrawal proofs, resulting in the loss of around $1.7 million from the bridge and ERC20 Vault contracts.
Exploits targeting bridges due to exposed keys have become a significant issue in the cryptocurrency sector, leading to losses totaling hundreds of millions in 2026. Nonetheless, Taiko's rapid recovery is notable, as it managed to compensate all impacted users in under two weeks.
"The bridge is open," Taiko announced on X on Thursday. "You can move funds to and from Taiko again. Our response is complete: the network is fully restored and every user is whole. Any limits in place won't affect normal use. A reminder: we'll never DM you first, and there's no claim site. Only trust this account," they stated, adding that a detailed post-mortem of the incident will be published soon.
The restoration of the bridge was achieved through a multi-stage recovery process that involved fixing the vulnerability, fully replenishing bridge reserves, reinstating layer-2 network operations, and undergoing an independent security review of the fix.
To maintain stability, the bridge has reopened with conservative withdrawal limits.
The cryptocurrency market has reacted positively to the swift resolution, with the TAIKO token experiencing a surge of up to 136% in recent trading, indicating significant relief among holders after the protocol successfully managed to contain the issue and ensure full user protection.
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Why it matters:
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