Bedrock Admits to a Security Breach That Saw It Lose About $2M

The exploit was directed to uniBTC, a synthetic Bitcoin token employed in DeFi.

Multi-asset liquid staking protocol Bedrock has admitted to a security breach that saw it lose about $2 million. The exploit was directed to uniBTC, a synthetic Bitcoin token employed in decentralized finance (DeFi).

On September 27, Bedrock posted a message about the incident and stated that they are working on fixing the problem. The team assured everyone that all the remaining money is secure and that a detailed reimbursement plan will be presented shortly, in addition to a post-mortem analysis.

The majority of the losses were in decentralized exchange liquidity pools, however, Bedrock pointed out that the underlying wrapped Bitcoin (BTC) tokens are safe. This has triggered debate on the level of security in the crypto market, especially when it comes to securing the funds.

Bedrock was launched in February 2023 by Singapore-based RockX and seeks to target institutional investors with products such as uniBTC, uniETH and uniIOTX, which offer yield through staking. Bedrock is currently the eighth largest liquid staking protocol with a total value locked (TVL) of over $240 million.

The platform’s uniBTC token is designed to track the price of BTC at a 1:1 ratio and can be used in various DeFi applications to generate yield or participate in decentralized autonomous organizations (DAOs).

Liquid staking has expanded greatly and the sector has more than $11.4 billion in TVL. With the growth of the crypto market, such platforms as Bedrock must ensure the security of investors’ assets.