Syscoin Releases Report on Bridge Exploit Linked to Cross-Layer Interpretation Mismatch

Syscoin has released an incident report detailing a previously disclosed attack, attributing the vulnerability to a cross-layer interpretation mismatch between Syscoin Core and the NEVM relay. According to Foresight News, the report said a malicious UTXO burn transaction included duplicate asset commitments targeting the same output index, creating an ambiguous payload that Syscoin Core and the NEVM relay interpreted differently. Syscoin Core may have treated the output as a custom asset created by the attacker, while the relay interpreted the same transaction as involving native SYS/SYSX assets. Syscoin said the maliciously minted funds have been returned to an official Syscoin recovery address and were subsequently destroyed by converting them into standard OP_RETURN tokens, making them unspendable by the protocol and restoring the reported token supply to its expected level. The bridge remains paused, and Syscoin said final review and remediation work is still ongoing.