Bridge is paused, and fund splitting is being tracked—Syscoin's case is a textbook example of a cross-chain security failure. Let's wait for the final review to see how the responsibilities are allocated.

Syscoin has released an initial post-incident report stating that the Syscoin Bridge has been paused, and that about 5 billion SYS tokens experienced unauthorized outputs. The attacker exploited a validation flaw to incorrectly assess transaction proofs, generating outputs via the UTXO Bridge. After the funds entered the UTXO chain, they were transferred, split, and about 40 billion and 10 billion SYS were sent to two major contaminated addresses. The team has identified the affected routes and has implemented a fix. It is now tracking the funds and coordinating to blacklist/freeze related deposits, and advises users to avoid interacting with relevant accounts during the Bridge suspension period.