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Hackers hit bedrock with $2 million exploit days after major milestone.
Key Notes
Cybercriminals has yet again hit the crypto industry with Bedrock, an Ethereum-based liquid restaking protocol becoming their latest victim.Despite the security breach, Bedrock confirms that core assets are safe and a compensation plan is being developed.The Ethereum-based liquid restaking platform Bedrock has fallen victim to a cyberattack, resulting in a loss of approximately $2 million. The protocol confirmed on Friday that the exploit targeted its uniBTC contract, which represents the staked version of wrapped Bitcoin WBTC $65 543 24h volatility: 3.0% Market cap: $10.01 B Vol. 24h: $158.71 M .
Hackers exploited vulnerabilities within the protocol, leading to significant losses. Despite this, the liquid restaking protocol assured the community via a statement on X (formerly Twitter) that the core wBTC tokens and the standard Bitcoin BTC $65 737 24h volatility: 3.1% Market cap: $1.30 T Vol. 24h: $37.80 B in their reserves were unaffected, as most of the losses occurred in decentralized exchange liquidity pools.
Bedrock to Compensate Attack Victims
The hack came just 48 hours after Bedrock celebrated a new milestone, with uniBTC’s total value locked (TVL) reaching 1,332.52 BTC across 11 blockchains on September 25.
Sharing the achievement on X, the protocol disclosed that Ethereum ETH $2 668 24h volatility: 1.7% Market cap: $321.15 B Vol. 24h: $17.37 B emerged as the leading choice for users, with BNB Chain and Merlin Chain, a layer-2 scaling solution on the Bitcoin network, ranking as the second and third most popular chains for uniBTC staking.
🚀 uniBTC TVL Soars: 1,332.52 BTC locked across 11 chains, with nearly 70K holders joining our community!
🫡 Top 5 Chains: Ethereum leads the charge, with @BNBCHAIN securing that sweet 2nd place. @MerlinLayer2 @Optimism @BSquaredNetwork are in a tight race for the next spots.… pic.twitter.com/QwLwSbmLKL
— Bedrock | Bitcoin Restaking LIVE (@Bedrock_DeFi) September 25, 2024
Hackers struck on September 27, just days after Bedrock celebrated its achievement. However, the liquid restaking protocol said it has since addressed the breach and is actively working to prevent similar incidents in the future.
The team announced that the situation is under control and that they are taking steps to resolve the underlying issues that led to the exploit.
“The root cause has been identified and we are taking steps to address it. A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report,” said Bedrock.
Part of the plans under consideration include airdropping new tokens to affected users. If approved, the platform will take a snapshot of user balances to distribute the token accordingly to ensure every victim of the attack gets reimbursed.
Hackers on Rampage
The latest incident marks Bedrock’s first security breach since its launch in February 2023 by RockX, a blockchain company that users aboard the Web3 economy.
Data from DefiLlama shows the liquid restaking protocol ranks among the top 10 largest platforms in the liquid staking market, holding the eighth position with over $240 million in total value locked (TVL).
Meanwhile, Bedrock is not the only protocol exploited by cybercriminals in recent times. This month alone, multiple platforms have fallen victim to similar attacks.
Last week, BingX, one of the leading crypto trading platforms in Singapore suffered a $45 million security breach on its hot wallet. As part of its measures to protect the firm from further attacks, BingX temporarily suspended any kind of withdrawals from the platform.
Similarly, cybercriminals hit the industry again on September 11 with Indodax, a prominent crypto exchange in Indonesia becoming their target. The attackers managed to steal around $20 million in digital assets belonging to users.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
