Bedrock, a multi-asset liquid staking protocol, has confirmed it suffered a security breach involving its synthetic Bitcoin token, uniBTC.
Hackers exploited a vulnerability in the protocol, resulting in a loss of approximately $2 million in funds.
“We want to inform you that the Bedrock team is aware of a security exploit involving uniBTC. The issue has been handled and funds are SAFU,” the project said in a post on X on September 27.
### Bedrock to Reimburse Affected Users
The team behind Bedrock stated that they have since addressed the issue and are actively working on a comprehensive plan to reimburse affected users. They assured the community that all remaining funds on the platform are secure.
“A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report,” Bedrock stated in their announcement. The bulk of the stolen funds were taken from decentralized exchange liquidity pools, but Bedrock emphasized that the underlying wrapped Bitcoin (BTC) tokens and standard BTC held in reserves remain safe.
The company is committed to transparency and is expected to release a detailed post-mortem report soon, outlining the nature of the exploit and the steps being taken to prevent future breaches.
Important Announcement from the Bedrock Team
We want to inform you that the Bedrock team is aware of a security exploit involving uniBTC. The issue has been handled and funds are SAFU.
We want to reassure everyone that the underlying wrapped BTCs and BTCs in reserves are… — Bedrock | Bitcoin Restaking LIVE (@Bedrock_DeFi) September 27, 2024
Bedrock, launched in February 2023 by Singapore-based blockchain firm RockX, offers a variety of staking products such as uniBTC, uniETH, and uniIOTX. These synthetic tokens allow users to earn yield through staking while maintaining exposure to major blockchain assets. The protocol has been particularly appealing to institutional investors due to its emphasis on strict Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
According to data from DefiLlama, Bedrock ranks as the eighth-largest liquid staking protocol in the market, with over $240 million in total value locked (TVL) on its platform. Liquid restaking has become a significant segment of the crypto industry, with protocols like Eigenlayer leading the charge, boasting over $12.1 billion in TVL on its mainnet.
