Bedrock DeFi Platform Experiences Security Breach Involving uniBTC

Security Breach and Reimbursement Plan

Bedrock, a staking protocol, has confirmed that their platform was affected by a bug related to uniBTC, allowing users to exchange a uniBTC with an ETH token. The security breach was announced on Sept. 27, with Bedrock stating that the issue is currently being addressed by their team. They assured users that remaining funds are safe and a reimbursement plan will be launched soon, estimating the total loss to be around $2 million in digital assets.

Bug Exploited for Bitcoin to Ethereum Exchange

Users discovered that the bug on the platform allowed for the exchange of Bitcoin for Ethereum due to a security exploit affecting uniBTC, a synthetic Bitcoin token used in DeFi. A user noted that this function may have been leftover from the uniETH implementation.

Losses and Recovery Efforts

Most of the losses incurred were from decentralized exchange liquidity pools, but Bedrock clarified that the underlying wrapped Bitcoin tokens and standard Bitcoin held in reserves were secure. The team has identified the root cause of the security exploit and is collaborating with audit teams to recover the lost funds. They reassured users that all uniBTC holdings are safe and will release a post-mortem report soon.

Bedrock DeFi Profile

Bedrock was launched in February 2023 by Singapore-based blockchain firm RockX, aiming to make liquid staking appealing to institutional investors while complying with KYC and AML regulations. As the eighth-largest liquid staking protocol per DefiLlama, Bedrock has over $240 million in total value locked on its platform.

Source: DefiLlama