Syscoin has released a security incident report detailing a vulnerability in its UTXO-to-NEVM bridge that led to the unauthorized release of about 5 billion SYS on the UTXO side. According to Odaily, the related funds were returned to an official recovery address and destroyed via a standard OP_RETURN method, preventing the tokens from being used by the protocol again.
Syscoin said the on-chain reported SYS supply has returned to its expected level. The bridge remains suspended while the team completes final review and fixes.
The project said it will address a cross-layer parsing flaw. Syscoin added that a key lesson from the incident is that cross-layer systems must apply unified data normalization, and any ambiguous bridging proof should fail by default.