Syscoin Releases Bridge Security Incident Report: Recovered Funds Destroyed; Cross-Layer Parsing Vulnerability to Be Fixed

Syscoin has released a security incident report detailing the UTXO-to-NEVM bridge vulnerability. According to the report, this incident resulted in the unauthorized release of approximately 5 billion SYS tokens on the UTXO side. The affected funds have since been returned to the official recovery address and permanently destroyed using the standard OP_RETURN mechanism, rendering them unusable by the protocol. As a result, the on-chain SYS supply has reverted to its expected value. The bridge functionality remains suspended while the team completes its final review and remediation efforts.