Cysic Foundation Investigates Unauthorized Token Minting on BNB Smart Chain

According to the Foundation’s report released on Sunday via platform X, their cross-chain bridge was suspended after a perpetrator exploited a data-handling vulnerability, enabling the creation of 10 million CYS tokens on the BNB Smart Chain on Saturday. Early evidence suggests that unauthorized access was gained to the database supporting the bridge’s operations.

The unauthorized minting took place on October 17 at 12:31:38 UTC. Shortly after, at 13:47:52 UTC, the recipient address was added to the token contract’s blacklist. Approximately 2.8 million of the minted CYS tokens still remain at this address, with transfer capabilities since restricted. CoinMarketCap data shows that about 160.8 million CYS tokens are currently in circulation.

CYS tokens serve as incentives for various stakeholders within the Cysic ecosystem, including users, computation resource providers, network governance participants, and contributors, according to the project’s tokenomics documentation.

The Foundation clarified that the breach affected only the bridge’s message processing and token minting function; it did not compromise the main blockchain network or any other operational systems. They confirmed that no existing CYS tokens or other assets held in users’ wallets were stolen or moved without authorization.

The investigation is ongoing, with the Foundation noting that minted token quantity alone does not define the overall dollar loss. Detailed analysis of token transfers, swaps, and actual losses is underway. Cysic has engaged a security firm, which remains unnamed, and intends to release an update once this phase of the investigation concludes.

Cysic’s transparent approach to handling the unauthorized minting incident underlines the importance of vigilance in cross-chain operations and aims to maintain community trust while assessing the real financial impact.