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Staking protocol Bedrock confirmed that its platform was infiltrated by a bug involving uniBTC, which allowed users to exchange a uniBTC with an eth token.
Bedrock announced via an x post on September 27 that they are aware of the security breach and that the issue is currently “handled” by their team.
They also assured users that the remaining funds were safe and plan to launch a refund plan in the near future, estimating the total loss at approximately $2 million in digital assets.
That said, one user of the platform discovered that the bug allowed him to exchange his bitcoin (btc) with ethereum (eth). This is because the security exploit directly affected the platform's uniBTC, a synthetic bitcoin token used in DeFi.
“This feature was probably a leftover from the uniETH implementation,” the user commented.
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According to data from crypto.news, bitcoin is selling for $65,449 per token, while the price of ethereum stands at $2,659 at the time of writing.
Bedrock claimed that the majority of the losses came from decentralized exchange liquidity pools and clarified that the underlying wrapped bitcoin tokens and standard bitcoin held in reserves were safe.
“At this time, no additional actions are required from our community. Rest assured, all uniBTC held by users is safe,” Bedrock said, adding that the platform will release a post-mortem report shortly.
So far, the protocol team has identified the root cause of the security issue and is working closely with its audit teams to recover the lost funds.
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Bedrock was launched in February 2023 by Singapore-based blockchain company RockX. The protocol was designed to make liquid betting attractive to institutional investors by prioritizing compliance with anti-money laundering and know-your-customer regulations.
Bedrock is ranked the 8th largest liquid betting protocol according to DefiLlamawith a total value of more than $240 million locked on its platform.
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