Bedrock Suffers $2M Loss in Security Exploit; Reimbursement Plan Underway

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Bedrock, a popular multi-asset liquid staking protocol, has confirmed a security breach involving uniBTC, a synthetic Bitcoin token used in decentralized finance (DeFi). Hackers reportedly exploited the platform, resulting in the loss of around $2 million in assets.

The announcement was made via a post on X on September 27, where Bedrock acknowledged the incident and reassured its users that the issue had been addressed.

While the breach primarily affected decentralized exchange liquidity pools, the platform emphasized that the core assets, including wrapped Bitcoin (BTC) tokens and standard Bitcoin reserves, remain secure.

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Bedrock Responds

Bedrock, launched in early 2023 by Singapore-based blockchain firm RockX, is known for offering synthetic representations of major blockchain tokens, including uniBTC, uniETH, and uniIOTX. These tokens enable users to earn yield through staking without needing to lock their assets for extended periods.

Despite the hack, Bedrock assured its community that it has handled the situation and is in the process of implementing a reimbursement plan for affected users.

“A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report,” the platform stated, seeking to maintain trust and transparency amid the setback.

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Restaking Sector

Bedrock operates within the rapidly growing restaking space, a sector that has gained significant momentum in recent months. Liquid restaking allows users to stake assets in a more flexible manner, providing liquidity while simultaneously earning rewards. The sector has grown to hold over $11.4 billion in TVL

According to data from DefiLlama, Bedrock holds over $240 million in total value locked (TVL), making it the eighth-largest liquid staking protocol on the market.

The security breach comes at a time when the liquid restaking sector is booming, largely driven by the success of protocols like EigenLayer. EigenLayer, launched its Ethereum (ETH) restaking feature in April, currently boasting more than $12.1 billion in assets on its mainnet.

As Bedrock works to rectify the damage and regain user confidence, the incident underscores the rising hacks in DeFi platforms.