Syscoin Pauses Bridge After Exploit Creates 5B Unauthorized SYS

Syscoin has paused its Bridge after a security incident that resulted in the creation of approximately 5 billion unauthorized SYS tokens. In a preliminary postmortem, the team said an attacker exploited a validation flaw in the Bridge process, causing the system to incorrectly accept a transaction proof and generate the unauthorized outputs through the UTXO Bridge path. The funds were later moved and split across multiple addresses, with around 4 billion SYS and 1 billion SYS traced to two major tainted wallets. Syscoin said it has identified the issue, prepared a fix, and is working with exchanges and ecosystem partners to monitor, freeze, or blacklist affected funds. Users have been advised not to use the Bridge until further notice.