Radiant Capital: The agreement is solvent and a bad debt recovery plan will be implemented

Radiant Capital announced on the X platform that after launching a new native USDC market on Arbitrum on January 2nd, it was attacked by flash loans, resulting in accumulated bad debts of about 1.3% of TVL in the WETH market. The Radiant DAO committee has initiated emergency administrative control measures, suspended all markets on Arbitrum to mitigate further damage, and investigations are ongoing.

Radiant stated that the protocol has the ability to pay, and will implement a bad debt remediation plan to completely readjust the capital of the protocol and enable users to fully use their deposits. For users who face liquidation risks during the suspension period, proposed plans will also be implemented to ensure that no users are unfairly punished. Law enforcement officials will be brought in when more data about the attackers is collected. In the next few days, the team will propose detailed post-analysis and proposed technical and bad debt remediation plans.