Taiko Reopens Ethereum Layer-2 Bridge Ten Days After $1.7 Million Hack

Taiko reopened its Ethereum layer-2 cross-chain bridge on July 2, 2026, ten days after a June 22 attack drained roughly $1.7 million from its bridge and ERC20 Vault contracts. CoinDesk reported the incident originated from a compromised SGX signing key that had been exposed on GitHub, allowing forged withdrawal proofs. The protocol halted operations immediately after the exploit.

Recovery steps included patching the vulnerability, replenishing reserves to full 1:1 backing, restoring layer-2 network activity, and completing an independent security review, according to CoinDesk. The bridge resumed under conservative withdrawal quotas. Taiko stated on X that all affected users have been made whole.

The announcement read: "The bridge is open. 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. " The protocol said it will publish a full post-mortem soon. The TAIKO token rose as much as 136 percent in recent trading, CoinDesk reported.