Attackers exploited a validation flaw in Syscoin Bridge to generate approximately 5 billion SYS tokens without any real backup on the UTXO chain.
it is about Dual layer blockchain network compatible with Ethereum Virtual Machine (EVM) and use the Bitcoin chain through proof of work (PoW). Its native bridge allows you to move assets between UTXO and NEVM layers, allowing you to transfer assets between both layers. This characteristic makes Bitcoin a critical infrastructure for users who seek the security of Bitcoin and the flexibility of smart contracts.
The Syscoin team revealed details of the incident mechanism and actions taken so far in a preliminary post-mortem published on June 7th. There they explain that the bridge repeater incorrectly accepted and interpreted the transaction proof.
According to the documentation, this caused the system to treat the operation as valid and credit the malformed output of the SYS token through the bridge’s UTXO path. The resulting funds will be transferred and split into subsequent transactions.
syscoin team Indicates that compromised tokens are currently concentrated in two directions: One is around 4 billion SYS and the other is close to 1 billion SYS, with a value of over $8 million at the current price of the token. After the incident, the price of SYS fell by 14% in the past 24 hours.
The impact was significant, as the SYS 5 billion issued was more than 5.6 times the network’s current circulating supply (SYS 891 million).
According to the team, the address and transactions derived from it are being actively tracked by the team.
Track funds and alert exchanges
Considering the incident, The team said it has contacted exchanges and ecosystem partners to request a block.freezing or strict monitoring of SYS deposits linked to compromised UTXO traces and their derivative transactions. The bridge remains temporarily suspended until the investigation is complete.
The team claims they have already identified the affected validation paths and have a fix ready. According to the post-mortem, the priority is to complete bug implementation and review. In addition to determining the correct process to fix the output Neutralize unauthorized network effects.
Syscoin warns users that do not interact with bridge We remain paused and will announce new updates as our investigation and remediation progresses.
This accident once again highlighted the inherent vulnerability of bridges. Although Syscoin acted quickly and alerted the exchange, the facts point to a single failure in testing validation. This can seriously compromise network integrity.
(Tag Translation) Blockchain
