Syscoin pauses Bridge after security incident tied to about 5B unauthorized SYS outputs

Syscoin said it has paused its Bridge following a security incident involving roughly 5B SYS, according to a preliminary postmortem. The project said an attacker exploited a validation flaw in the Bridge flow, leading the system to incorrectly accept or interpret a transaction proof. As a result, about 5B unauthorized SYS outputs were created via the UTXO Bridge path. After the funds reached the UTXO chain, they were moved and split, with roughly 4B SYS and 1B SYS associated with two major tainted addresses. Syscoin said it has identified the affected validation path, prepared a fix, and is coordinating with exchanges and ecosystem partners to blacklist, freeze or monitor SYS deposits connected to the tainted UTXO trail. Users are advised not to interact with the Bridge while it remains paused.