Syscoin Releases Bridge Security Incident Report: Tokens Burned After Recovery, Cross-Layer Resolution Flaw to Be Fixed

Odaily reported that Syscoin has released a bridge security incident report detailing the UTXO-to-NEVM bridge vulnerability. According to the report, the incident led to the unauthorized release of approximately 5 billion SYS tokens on the UTXO side. The affected funds were subsequently returned to the official recovery address and burned via the standard OP_RETURN method, rendering them unusable by the protocol again. The on-chain reported SYS supply has returned to the expected value. Bridge functionality remains suspended as the team completes its final review and fixes.

Syscoin noted that it will fix the cross-layer resolution flaw, emphasizing that the core lesson from this incident is that cross-layer systems must uniformly normalize data, and any bridge proof with ambiguity should default to failure.