Crypto Staking Platform Bedrock Falls Victim to Exploit Users Able to Exchange 1 ETH for 1 BTC
Staking protocol Bedrock has confirmed that a bug related to uniBTC has compromised their platform, enabling users to swap uniBTC for ETH tokens.
On September 27, Bedrock took to X to announce their awareness of the security issue, stating that their team is currently addressing the situation. They reassured users that the remaining assets are secure and indicated plans for a reimbursement strategy in the near future, estimating the total loss at around $2 million in digital assets.
A platform user discovered that the bug permitted the exchange of Bitcoin (BTC) for Ethereum (ETH) due to the exploit affecting uniBTC, a synthetic Bitcoin token utilized in decentralized finance (DeFi). “This function was likely leftover from the uniETH implementation,” the user noted.
In the latest updates from crypto.news, Bitcoin’s price is reported at $65,449 per token, while Ethereum is valued at $2,659. Bedrock clarified that the majority of the losses stemmed from decentralized exchange liquidity pools and reassured users that the wrapped Bitcoin tokens and standard Bitcoin held in reserves remain secure.
“At this time, no additional action is required from our community. All uniBTC held by users is safe,” Bedrock stated, also mentioning that a detailed post-mortem report will be provided soon.
Currently, the protocol’s team has pinpointed the root cause of the security breach and is collaborating closely with their audit teams to recover the lost assets.
Launched in February 2023 by Singapore-based blockchain firm RockX, Bedrock aims to make liquid staking appealing to institutional investors by emphasizing compliance with know-your-customer and anti-money laundering regulations. As per DefiLlama, Bedrock is recognized as the eighth-largest liquid staking protocol, boasting a total value locked of over $240 million on its platform.
For further insights, see: CoinStats releases incident report following $2.2m security breach.
