Syscoin Recovers and Burns 5 Billion SYS Tokens After Bridge Security Incident
2026-06-17 20:34

Syscoin reports that approximately 5 billion SYS tokens were unauthorizedly released on the UTXO side due to a vulnerability in the UTXO-to-NEVM bridge. The team successfully returned these funds to the official recovery address and destroyed them using the standard OP_RETURN mechanism, ensuring they could no longer be utilized within the protocol. Consequently, the reported supply of SYS on the blockchain has returned to its expected level.

The bridge functionality remains suspended as the team completes final reviews and repairs. Syscoin stated that it will fix the cross-layer parsing flaws associated with this issue. The core lesson learned from this incident is that cross-layer systems must ensure unified and standardized data processing; any bridge validation method that involves potential ambiguity should be designed to fail by default.

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Tags:
SYS
Syscoin
UTXO-to-NEVM
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