Ex-Employee Exploits Bedrock’s UniBTC Protocol for $2 Million

Fuzzland, a smart contract analytics platform, has revealed that a former employee was behind a $2 million exploit targeting Bedrock’s UniBTC protocol in September 2024. The incident involved the use of insider access and malware, resulting in significant financial losses. According to Fuzzland's transparency report, the ex-employee employed a combination of social engineering tactics, supply chain attacks, and advanced persistent threat techniques to steal sensitive data. This data was then used to exploit a vulnerability in the UniBTC protocol, which had been internally discussed during an emergency response call.

The attacker inserted malicious code into engineering workstations, creating backdoors that remained undetected for weeks. This allowed the attacker to access sensitive information and act on the vulnerability, which had been initially flagged in a Dedaub report. Fuzzland claimed that it had detected the vulnerability before the attack but deprioritized it due to false positive noise.

In response to the incident, Fuzzland has taken several steps to mitigate the damage and enhance security. The company has compensated Bedrock for the $2 million in losses and launched a joint investigation with the security firm ZeroShadow. Reports have been filed with law enforcement agencies, and Fuzzland is collaborating with Seal 911 and SlowMist to improve industry-wide security standards. Despite the financial impact, Fuzzland assured that no client or customer data was affected by the breach, as the incident was isolated to a separate internal environment.

Bedrock, a multi-asset liquid restaking protocol, offers products such as UniBTC, UniETH, and UnilOTX, which are synthetic representations of major blockchain tokens. These products allow users to earn yields through staking. On September 27, Bedrock confirmed that it had been exploited, with the attacker draining $2 million in liquidity from its decentralized exchange pools. Despite the hack, Bedrock’s total value locked (TVL) grew from $240 million in September 2024 to $535 million in June 2025.

The incident highlights the increasing sophistication of cyber threats in the blockchain industry. Hackers are shifting their strategies from exploiting smart contract vulnerabilities to employing social engineering schemes. This trend suggests a need for enhanced security measures and vigilance within the industry to protect against such attacks. The use of insider knowledge and advanced techniques by the ex-employee underscores the importance of robust internal security protocols and continuous monitoring to prevent similar incidents in the future. The collaboration between Fuzzland and other security firms indicates a proactive approach to addressing these challenges and enhancing the overall security of the blockchain ecosystem.