Staking protocol Bedrock confirmed their platform was infiltrated by a bug involving uniBTC, which allowed users to exchange a uniBTC with an ETH token.

Bedrock announced through an X post on Sept. 27 that they are aware of the security breach and the issue is currently “handled” by their team. They also assured users that the remaining funds are safe and they plan to launch a reimbursement plan in the near future, estimating the total loss to be approximately $2 million in digital assets.

A user on the platform discovered that the bug allowed for the exchange of Bitcoin with Ethereum. This occurred because the security exploit directly affected the platform’s uniBTC, a synthetic Bitcoin token used in DeFi. “This function was likely leftover from the uniETH implementation,” the user remarked.

According to data, Bitcoin is sold at $65,449 per token while Ethereum’s price stands at $2,659 at the time of writing.

Bedrock claimed most of the losses were from decentralized exchange liquidity pools and clarified that the underlying wrapped Bitcoin tokens and standard Bitcoin held in reserves were secure. “At this time, no extra actions are required from our community. Rest assured that all uniBTC held by users are safe,” said Bedrock, adding that the platform will release a post-mortem report shortly.

As of now, the protocol’s team has identified the root cause of the security exploit and is working closely with their audit teams to recover the lost funds.

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 safe.

Bedrock was launched in February 2023 by Singapore-based blockchain firm RockX. The protocol was designed to make liquid staking attractive for institutional investors by prioritizing compliance with know-your-customer and anti-money laundering regulations.

Bedrock is ranked as the eighth-largest liquid staking protocol, worth over $240 million in total value locked on its platform.

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