System of a Down Album Toxicity and Steal This Album! (2001–2003)

On September 3, 2001, System of a Down had planned on launching their second album at a free concert in Hollywood as a "thank you" to fans. The concert, which was to be held in a parking lot, was set up to accommodate 3,500 people, however, an estimated 7,000 to 10,000 fans showed up. Due to the large excess number of fans the performance was cancelled by police officers just prior to the group taking stage. No announcement was made that the concert had been cancelled. Fans waited for more than an hour for the group to appear, but when a banner hanging at the back of the stage that read "System of a Down" was removed by security, the audience rushed the stage, destroying all the band's touring gear (approximately $30,000 worth of equipment) and began to riot, throwing rocks at police, breaking windows, and knocking over portable toilets. The riot lasted six hours, during which six arrests were made. The band's manager, David "Beno" Benveniste, later said that the riot could have been avoided if the group had been permitted to perform or had they been allowed to make a statement at the concert regarding the cancellation. System of a Down's scheduled in-store performance the next day was cancelled to prevent a similar riot.

The group's big break arrived when their second album Toxicity debuted at #1 on the American and Canadian charts, despite the events of September 11. The album eventually achieved multi-platinumcertification and has since sold over 12 million copies worldwide. It was still on top in America during the week of the September 11, 2001 attacks and the political environment caused by the attacks added to the controversy surrounding the album's hit single "Chop Suey!" The song was taken off the radio as it contained politically sensitive lyrics at the time such as "(I don't think you) trust in my self-righteous suicide." Regardless, the video gained constant play on MTV as did the album's second single, "Toxicity". Even with the controversy surrounding "Chop Suey!" (which earned a Grammy nomination), System of a Down still received constant airplay in the United States throughout late 2001 and 2002 with "Toxicity" and "Aerials". In May 2006, VH1 listed Toxicity in the #14 slot in the 40 Greatest Metal Songs.

In 2001, the band went on tour with Slipknot throughout the United States and Mexico. Following a performance in Grand Rapids, Michigan, Odadjian was harassed, ethnically intimidated, and was physically assaulted by security guards backstage, who then dragged him out of the venue. Odadjian received medical attention from police and later filed a suit against the security company. Despite the incident, the tour was a success and System of a Down and Slipknot went on the Pledge of Allegiance Tour with Rammstein in 2001.

In late 2001, unreleased tracks from the Toxicity sessions made their way onto the internet. This collection of tracks was dubbed Toxicity II by fans. The group released a statement that the tracks were unfinished material and subsequently released the final versions of the songs as their third album, Steal This Album!, which was released in November 2002. Steal This Album! resembled a burnable CD that was marked with a felt-tip marker. 50,000 special copies of the album with different CD designs were also released, each designed by a different member of the band. The name of the album is a reference to Abbie Hoffman's counter-culture book, Steal This Book as well as a message to those who leaked the songs onto the internet. The song "Innervision" was released as a promo single and received constant airplay on alternative radio. A video for "Boom!" was filmed with director Michael Moore as a protest against the War in Iraq.