Syscoin Releases Bridge Security Incident Report: Recovered Funds Have Been Burned and Cross-Layer Parsing Vulnerability Will Be Fixed

Odaily reported that Syscoin released a bridge security incident report, revealing details of the UTXO-to-NEVM bridge vulnerability. It is reported that this incident caused approximately 5 billion SYS to be unauthorizedly released on the UTXO side. The relevant funds have since been returned to the official recovery address and destroyed using the standard OP_RETURN method, making them unusable by the protocol again. The reported SYS supply on-chain has been restored to the expected value. Currently, bridging functionality remains suspended, as the team is completing final reviews and fixes.

Syscoin stated that it will fix cross-layer parsing flaws, noting that the core lesson of this incident is that cross-layer systems must handle data in a standardized and unified manner, and any ambiguous bridge proofs should be considered failures by default.