The liquid restaking platform operating on the Ethereum network, Bedrock, has reported a security incident that led to the loss of about $2 million.
The attack, which happened on the 27th of September, aimed at the uniBTC contract – the staked representation of WBTC.
Bedrock, established in February 2023 by a blockchain firm, RockX, has reassured its stakeholders that no core asset is at risk.
Hackers took advantage of the vulnerabilities in the Bedrock protocol, which mainly impacted the uniBTC contract. This exploit caused considerable losses, especially to the liquidity pools of DEXs.
However, the protocol of the attack asserts that the core wBTC tokens and standard Bitcoin in their reserves were not affected.
In the aftermath of the breach, Bedrock used its X (formerly Twitter) to alert its community and implement measures to prevent future occurrences. Since then, they have established what led to the breach and implemented measures to avoid such occurrences in the future.
To tackle this challenge, management at Bedrock has released intentions to construct a compensation model for the clients impacted by the attack. The protocol is planning to launch new tokens to pay the victims. They are also planning to capture the balances of any user at a specific time to ensure that they pay the rightful amount. This proposed response is part of a larger action plan to reestablish lost trust and offer compensation to users.
In addition, the recent security breach at the Bedrock company happened when numerous attacks were reported in the cryptocurrency market.
In the last month alone, two popular crypto trading platforms, BingX and Indodax, also fell victim to hackers and lost substantial user funds. Such occurrences make it clear that the crypto market remains prone to risks and emphasizes the importance of improving the security of the services.
Bedrock, currently holding the eighth position in the list of liquid staking with TVL of more than $240 million at the time of writing in DefiLlama, is already focusing on enhancing the security mechanisms to counter future hacks.
The community has yet to receive the elaborate post-mortem report, which is expected to give more information on the attack and measures that the platform will deploy going forward.