Crypto Staking Platform Bedrock Glitch Allows 1 ETH for 1 BTC

Bedrock, a staking system, confirmed a uniBTC flaw that allowed users to convert uniBTC for ETH

On September 27, Bedrock disclosed that they are aware of the security breach and that their team manages the matter. This announcement was made via an X post.

They also reassured users that the remaining funds were secure and that a reimbursement plan would be implemented shortly. They estimated the total loss would be around $2 million in digital assets.

Nevertheless, a user on the platform discovered that the flaw enabled them to exchange their Bitcoin for Ethereum. This is because the security exploits directly impacted the platform’s uniBTC, a synthetic Bitcoin token utilized in DeFi.

The user commented, “This function was likely a leftover from the uniETH implementation.”

Ethereum is priced at $2,659 at the time of writing, while Bitcoin is currently being sold for $65,449 per token, according to data from crypto. News.

Bedrock asserted that most losses were attributable to decentralized exchange liquidity pools. It emphasized that the underlying wrapped tokens and standard Bitcoin stored in reserves were secure.

“At this time, our community is not required to take additional actions.” “Be assured that all uniBTC held by users are secure,” stated Bedrock, who also mentioned that the platform will soon release a post-mortem report.

The protocol’s team has identified the primary cause of the security exploit and is collaborating with their audit teams to reclaim the lost funds.

RockX, a blockchain company headquartered in Singapore, introduced Bedrock in February 2023.

The protocol prioritizes compliance with anti-money laundering and know-your-customer regulations to ensure that liquid staking appeals to institutional investors.

DefiLlama states Bedrock is the eighth-largest liquid staking protocol, with over $240 million secured onto its platform.