Taiko has completed a phased recovery process that included an independent security audit, with its TAIKO token jumping as much as 136% in recent trading.
The Ethereum layer-2 network has now restored its cross-chain bridge, just 10 days after the June 22 exploit forced it offline.
Operations were paused after the breach, which was traced to a compromised SGX signing key that had been accidentally exposed on GitHub. This vulnerability allowed an attacker to fabricate withdrawal proofs and siphon approximately $1.7 million from the bridge and ERC20 vault contracts.
Key-related bridge exploits continue to be a recurring issue across the crypto industry, contributing to hundreds of millions in losses in 2026 alone. Despite this backdrop, Taiko’s rapid response stands out, with all affected users fully reimbursed in under two weeks.
Announcing the relaunch on X, Taiko confirmed the bridge is once again operational, allowing users to transfer funds to and from the network. The team stated that the recovery process is complete, the system has been fully restored, and no users incurred losses. It also noted that any temporary limits in place are designed not to disrupt normal usage, while cautioning users to rely only on official communication channels and avoid potential scams. A detailed post-mortem is expected soon.
The recovery involved multiple steps, including fixing the vulnerability, restoring full 1:1 backing of bridge reserves, reactivating layer-2 network operations, and undergoing an external security review.
For now, the bridge has resumed activity with conservative withdrawal limits in place to maintain stability.
The market has responded positively to the swift turnaround, with the TAIKO token surging sharply as investor confidence rebounded following the protocol’s effective handling of the incident and commitment to user protection.
