Taiko has completed a multi-stage recovery process that included an independent security review, with its TAIKO token surging as much as 136% in recent trading.
The Ethereum layer-2 network has fully restored its cross-chain bridge just 10 days after shutting it down following a June 22 exploit.
The bridge was taken offline after the attack was traced to a compromised SGX signing key that had been mistakenly exposed on GitHub. The vulnerability allowed an attacker to forge withdrawal proofs and drain roughly $1.7 million from the bridge and ERC20 vault contracts.
Exploits involving leaked or exposed keys remain a persistent issue across the crypto industry, contributing to hundreds of millions in losses in 2026. Despite that backdrop, Taiko’s response has been notably swift, with all affected users fully compensated within two weeks.
In a post on X, Taiko confirmed the bridge is operational again and users can resume transferring funds to and from the network. The team said the system has been fully restored, the recovery is complete, and no users have suffered losses. It also warned users to rely only on official updates and avoid scams, adding that a detailed post-mortem will follow.
The recovery process included patching the vulnerability, restoring full 1:1 backing of bridge reserves, restarting layer-2 operations, and completing an independent security audit.
The bridge has reopened with conservative withdrawal limits to maintain stability during the relaunch phase.
Markets have reacted positively to the rapid turnaround, with TAIKO rallying sharply as confidence improved following the protocol’s effective containment of the exploit and full reimbursement of users.
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