Published on september 29, 2024, 12:29 am
Image source: Fox News
```json [ "TLDR: Bedrock faced a $2 million exploit but offered the hacker a job to strengthen security and recover funds, raising eyebrows in the crypto community. Despite silence from the hacker, Bedrock is compensating affected investors and working to secure funds. Similar instances show unconventional methods for fund recovery in the cryptocurrency industry amidst evolving security strategies." ] ```
Despite facing a significant setback of approximately $2 million in a smart contract exploit, Bedrock has taken an unconventional approach by offering the hacker involved a position to assist in bolstering the security of its protocol and recovering the stolen funds. This move has sparked curiosity and raised eyebrows within the crypto community.
The saga unfolded when Web3 security firm Dedaub identified a vulnerability in multiple uniBTC vaults of Bedrock on September 26. Although the bug was reported to Bedrock, no immediate action was taken, leading to an exploit resulting in losses of around $2 million. Shockingly, the potential damage could have extended up to $75 million if further exploited.
In response to this breach, Bedrock has not only acknowledged the incident but is actively working on devising a reimbursement plan to compensate affected investors. The protocol has also engaged audit teams and white hat hackers to recover the lost funds diligently.
In an unexpected twist, Bedrock attempted to establish contact with the hacker through an on-chain message on Etherscan, Ethereum’s blockchain analytics platform. Notably, Bedrock extended an intriguing offer of employment to the hacker, alongside a reward for exploiting the $2 million uniBTC vault.
Despite these gestures from Bedrock’s end, there has been silence from the hacker’s side regarding these offers as of now. However, users have been reassured that their existing funds remain secure throughout this ordeal, with commitments made by Bedrock to resume staking activities on uniBTC contracts once all vulnerabilities are addressed.
This development comes amidst similar incidents within the crypto space; recently, Shezmu managed to recover nearly $5 million from a hacker through negotiation after detecting an exploit in one of its stablecoin vaults. A 20% bounty reward was agreed upon after initial negotiations for 10%, showcasing yet another example of successful fund recovery through unconventional means within the cryptocurrency realm.
Such occurrences shed light on the evolving dynamics and strategies employed within the cryptocurrency industry when faced with security breaches and exploits. As protocols continue to strengthen their defenses and cooperate with ethical hackers, it demonstrates a proactive approach towards safeguarding investors’ assets and maintaining trust within the ecosystem despite encountering adversities along the way.
Original article posted by Fox News
