Syscoin Halts Cross-Chain Bridge After Exploit Involving 5 Billion SYS

Syscoin said on X it is responding to a security incident affecting its cross-chain bridge and involving 5 billion SYS tokens. The bridge has been temporarily suspended as the team investigates a validation vulnerability. According to Syscoin, the attacker abused a flaw in the bridge's validation process to generate unauthorized SYS outputs on the UTXO side. The funds have since been moved and split across multiple transfers. Syscoin said it is tracking the flows and working with exchanges and ecosystem partners to block "contaminated" UTXOs from being deposited, traded, or further distributed. The team said it has identified a fix and urged users not to interact with the bridge until service is restored.