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

Ethereum layer-2 scaling network Taiko has fully restored its cross-chain bridge on July 2, 2026, just 10 days after a $1.7 million exploit on June 22, 2026. The attack, triggered by an SGX signing key exposed on GitHub, was resolved through a multi-stage recovery process and independent security review. All affected users have been made whole, prompting a relief rally that pushed the TAIKO token up by as much as 136%.

Taiko bridge restoration after exploit

• ▪Taiko halted operations after the June 22, 2026 attack, which drained approximately $1.7 million from the bridge and ERC20 Vault contracts.
• ▪Ethereum layer-2 scaling network Taiko reopened its cross-chain bridge on July 2, 2026, 10 days after a June 22, 2026 hack.
• ▪The TAIKO token surged by as much as 136% in trading on July 2, 2026, following the restoration of the cross-chain bridge.
• ▪Bridge exploits involving exposed keys remain a persistent challenge in crypto, with hundreds of millions lost industry-wide in 2026.

SGX signing key GitHub exposure

• ▪The June 22, 2026 exploit of Taiko stemmed from a compromised SGX signing key that was mistakenly exposed on GitHub.
• ▪The exposed SGX signing key enabled an attacker to forge withdrawal proofs and drain funds from Taiko's bridge and ERC20 Vault contracts.

Multi-stage recovery process

• ▪Taiko's recovery process involved patching the vulnerability, replenishing bridge reserves to full 1:1 backing, and restoring layer-2 network activity.
• ▪Taiko subjected its security fix to an independent security review and reopened the bridge under conservative withdrawal quotas to ensure stability.

Full user reimbursement

• ▪Taiko made all affected users whole following the June 22, 2026 exploit.
• ▪Taiko warned users that the protocol will never direct message them first and that there is no official claim site for the recovery.

1 source