diff --git a/pkg/compiler/codegen.go b/pkg/compiler/codegen.go
index 95f3d03c9..c040b771d 100644
--- a/pkg/compiler/codegen.go
+++ b/pkg/compiler/codegen.go
@@ -12,7 +12,6 @@ import (
 	"sort"
 	"strings"
 
-	"github.com/nspcc-dev/neo-go/pkg/core/interop/interopnames"
 	"github.com/nspcc-dev/neo-go/pkg/encoding/address"
 	"github.com/nspcc-dev/neo-go/pkg/io"
 	"github.com/nspcc-dev/neo-go/pkg/vm"
@@ -1464,17 +1463,7 @@ func (c *codegen) convertBuiltin(expr *ast.CallExpr) {
 			}
 		}
 	case "panic":
-		arg := expr.Args[0]
-		if isExprNil(arg) {
-			emit.Opcode(c.prog.BinWriter, opcode.DROP)
-			emit.Opcode(c.prog.BinWriter, opcode.THROW)
-		} else if isString(c.typeInfo.Types[arg].Type) {
-			ast.Walk(c, arg)
-			emit.Syscall(c.prog.BinWriter, interopnames.SystemRuntimeLog)
-			emit.Opcode(c.prog.BinWriter, opcode.THROW)
-		} else {
-			c.prog.Err = errors.New("panic should have string or nil argument")
-		}
+		emit.Opcode(c.prog.BinWriter, opcode.THROW)
 	case "ToInteger", "ToByteArray", "ToBool":
 		typ := stackitem.IntegerT
 		switch name {
@@ -1518,8 +1507,6 @@ func transformArgs(fun ast.Expr, args []ast.Expr) []ast.Expr {
 		}
 	case *ast.Ident:
 		switch f.Name {
-		case "panic":
-			return args[1:]
 		case "make", "copy":
 			return nil
 		}
diff --git a/pkg/compiler/panic_test.go b/pkg/compiler/panic_test.go
index 54c51b9d8..3effe0956 100644
--- a/pkg/compiler/panic_test.go
+++ b/pkg/compiler/panic_test.go
@@ -1,13 +1,10 @@
 package compiler_test
 
 import (
-	"errors"
 	"fmt"
 	"math/big"
 	"testing"
 
-	"github.com/nspcc-dev/neo-go/pkg/core/interop/interopnames"
-	"github.com/nspcc-dev/neo-go/pkg/vm"
 	"github.com/stretchr/testify/require"
 )
 
@@ -18,26 +15,19 @@ func TestPanic(t *testing.T) {
 	})
 
 	t.Run("panic with message", func(t *testing.T) {
-		var logs []string
 		src := getPanicSource(true, `"execution fault"`)
 		v := vmAndCompile(t, src)
-		v.SyscallHandler = getLogHandler(&logs)
 
 		require.Error(t, v.Run())
 		require.True(t, v.HasFailed())
-		require.Equal(t, 1, len(logs))
-		require.Equal(t, "execution fault", logs[0])
 	})
 
 	t.Run("panic with nil", func(t *testing.T) {
-		var logs []string
 		src := getPanicSource(true, `nil`)
 		v := vmAndCompile(t, src)
-		v.SyscallHandler = getLogHandler(&logs)
 
 		require.Error(t, v.Run())
 		require.True(t, v.HasFailed())
-		require.Equal(t, 0, len(logs))
 	})
 }
 
@@ -54,16 +44,3 @@ func getPanicSource(need bool, message string) string {
 	}
 	`, need, message)
 }
-
-func getLogHandler(logs *[]string) vm.SyscallHandler {
-	logID := interopnames.ToID([]byte(interopnames.SystemRuntimeLog))
-	return func(v *vm.VM, id uint32) error {
-		if id != logID {
-			return errors.New("syscall not found")
-		}
-
-		msg := v.Estack().Pop().String()
-		*logs = append(*logs, msg)
-		return nil
-	}
-}