$2 Million Stolen from Bedrock Bitcoin Restaking Protocol

Hackers exploited a vulnerability in the synthetic token uniBTC, allowing them to steal $2 million from the Bedrock Bitcoin restaking protocol.

⚠️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…

— Bedrock | Bitcoin Restaking LIVE (@Bedrock_DeFi) September 27, 2024

On September 27, the platform’s team announced the discovery and resolution of the issue, assuring users that their funds, including both wrapped and base bitcoins, are safe.

The protocol temporarily halted interactions with the uniBTC contract. According to Bedrock representatives, the attack targeted DEX liquidity pools.

“The root cause [of the exploit] has been identified, and we are taking steps to address it. A comprehensive reimbursement plan is nearing completion and will soon be published along with an incident report,” the statement said.

Bedrock is collaborating with auditing groups and white-hat hackers to recover the lost funds. The company also promised to provide proof of reserves after the investigation concludes.

“At this time, no additional action is required from our community. Rest assured, all uniBTC held by users is safe,” the developers emphasized.

Earlier, the team behind the trading Telegram bot Banana Gun confirmed their intention to reimburse affected users $3 million stolen in an attack.

In July-September, cryptocurrency companies faced 34 incidents of hacks and fraud, resulting in losses exceeding $413 million, according to Immunefi.