According to ME News, on June 16 (UTC+8), Syscoin released a report on the previously exploited incident, revealing that the vulnerability stemmed from a cross-layer interpretation mismatch between Syscoin Core and the NEVM relay. The malicious UTXO destruction transaction contained duplicate asset commitments targeting the same output index. Syscoin Core and the NEVM relay interpreted this ambiguous payload differently: Core may have treated the output as the attacker’s custom asset, while the relay interpreted the same transaction as native SYS/SYSX assets. Syscoin stated that the maliciously minted funds have been returned to Syscoin’s official recovery address and subsequently burned as standard OP_RETURN tokens, rendering them unspendable by the protocol and restoring the reported token supply to its intended level. The bridge remains suspended while final reviews and fixes are still underway. (Source: Foresight News)
Syscoin Discloses Vulnerability Caused by Cross-Layer Interpretation Mismatch
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Summary
On June 16, Syscoin disclosed a recent security incident involving a cross-layer interpretation mismatch between Syscoin Core and the NEVM relay. Malicious UTXO destruction transactions exploited differing interpretations of asset commitments, resulting in conflicting on-chain records. While Syscoin Core may have interpreted the outputs as custom assets, the relay treated them as native SYS/SYSX. Funds were returned to a recovery address and rendered as unspendable tokens. The bridge remains paused as audits and remediation efforts continue.
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