CryptoWorld News reports that Wu said he learned that Syndicate Labs suffered a security incident: private key leakage led attackers to maliciously upgrade bridge contracts on two chains, transferring approximately 18.5 million SYND and about $50k worth of customer tokens.

Affected parties will receive full compensation, and SYND holders will also receive additional compensation.

Syndicate stated that the attack involved multi-stage reconnaissance, infrastructure mapping, vulnerability exploitation development, and precise execution, and that it has ruled out any involvement by internal personnel.

To enhance security, Syndicate has added an additional encryption layer to developer keys and restricted access. It plans to introduce hardware support or multi-signature support for upgrade signatures, and has put in place alerting and circuit breaker mechanisms.