Taiko Bridge Back Online After $1.7M Exploit, TAIKO Token Rallies 136%
Taiko has fully restored its Ethereum layer-2 cross-chain bridge ten days after a $1.7 million hack caused by an exposed SGX signing key. All affected users have been reimbursed and the TAIKO token has rallied as much as 136%.
Ethereum layer-2 network Taiko has restored full operations on its cross-chain bridge ten days after a $1.7 million exploit on June 22, completing a multi-stage recovery that included an independent security review and full reimbursement of all affected users.
The attack originated from a compromised SGX signing key that was accidentally exposed on GitHub. The vulnerability allowed an attacker to forge withdrawal proofs, siphoning approximately $1.7 million from the bridge and ERC20 Vault contracts. Following discovery of the breach, Taiko immediately halted bridge operations to contain further damage.
The recovery process involved four distinct phases: patching the underlying vulnerability, replenishing bridge reserves to full 1:1 backing, restoring layer-2 network activity, and subjecting the updated code to an independent third-party security audit. The bridge has since been reopened under conservative withdrawal quotas designed to maintain stability during the transition period.
'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.' The protocol also warned users to remain vigilant, noting it will never initiate direct messages first and that no claim site exists.
Taiko added that a full post-mortem of the incident will be published in the near future, providing a detailed breakdown of how the exploit unfolded and how the fix was implemented.
The TAIKO token responded sharply to the news, surging as much as 136% in recent trading sessions as holders reacted to the confirmed resolution and the protocol's demonstrated ability to protect user funds.
Bridge exploits tied to exposed or compromised signing keys remain a persistent security challenge across the broader crypto industry, with hundreds of millions of dollars lost to similar incidents in 2026 alone. Taiko's ability to remediate the breach and make users whole within less than two weeks represents one of the faster full recoveries recorded following a bridge-level exploit this year.
