In June 2026, Syscoin's cross-chain bridge flaw allowed the creation of 5 billion unauthorized SYS tokens, over five times the circulating supply. This supply shock caused a rapid market sell-off, with prices dropping over 7% in 24 hours. The incident highlights risks in bridge validation and the importance of supply controls like circuit breakers and independent verification. Recovery depends on transparent postmortems, coordination with exchanges, and improved bridge security measures to prevent future failures.
Syscoin's bridge was exploited due to a transaction-proof validation flaw that allowed manipulated data to bypass verification, resulting in about 5 billion unauthorized SYS tokens being created. This flaw did not involve private key theft but a logi...
Syscoin paused its blockchain bridge after a security flaw allowed an attacker to create about 5 billion unauthorized SYS tokens through its UTXO bridge path. The team traced most of the tainted tokens to two addresses holding roughly 4 billion and 1...
