Radiant Capital Suffers $50M Loss in Second Major Hack
- Lending protocol Radiant Capital has once again fallen victim to a cyberattack.
- This time, the protocol has suffered even greater losses.
- Radiant Capital is actively investigating the breach.
The rise of decentralized finance (DeFi) has brought both innovation and opportunity. Still, it has also attracted malicious actors, leading to a growing number of protocols falling victim to increasingly sophisticated hacks. Several platforms have been repeatedly targeted this year alone, with hundreds of millions in user funds stolen. Cross-chain lending protocol Radiant Capital was one of the earliest victims, suffering a $5 million loss in January 2024.
The protocol has been hit again, this time in a more severe blow.
Radiant Capital Hacked Again
Blockchain lending protocol Radiant Capital has once again lost tens of millions to malicious actors. On Wednesday, October 16, 2024, security alerts across the industry highlighted an exploit in the protocol, resulting in losses of over $50 million.
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According to DeFi Security, Radiant Capital’s contracts were exploited on BSC and ARB chains with the ‘transferFrom’ function, granting the attacker unauthorized access to drain users’ funds in USDC, WBNB, ETH, and others.
DeFi Security further explained the nature of the hack, emphasizing its difference from the January exploit. While the first attack involved a flash loan exploit, the latest breach occurred when the hacker compromised three signers of Radiant Capital’s multi-signature wallet, which 11 signers control. The attacker could transfer ownership and upgrade the contracts by gaining control of these key signers, leading to far greater financial damage than the previous attack.
In response to the alerts, Radiant Capital made a statement on its platform.
“We Are Aware:” Radiant Capital
In a tweet posted on the same day, Radiant Capital confirmed the exploit on its contracts. While the protocol did not disclose the full extent of the breach or the amount lost, it emphasized that it is actively investigating the situation.
As a precaution, the protocol announced that all markets on Base and Mainnet have been paused and will remain unavailable until further notice.
Several security experts have also been enlisted to aid the ongoing investigation, with the firm promising to provide an update as soon as possible.
Security experts’ estimates of the losses vary, with figures ranging between $50 million and $58 million. The hacker’s wallet is also believed to hold about $50 million worth of Arbitrum-based assets and BNB Chain tokens.
On the Flipside
- A surge of fraudulent posts mimicking Radiant Capital’s damage control has caused confusion on X, with a security firm mistaking a fake for an official statement. Users are urged to exercise caution and await official comments from the protocol.
- Last month alone, the crypto industry lost over $120 million to hacks and scams.
Why This Matters
The $50 million hack on Radiant Capital intensifies the growing concerns over the rising trend of cyberattacks in the crypto industry. However, as the saying goes, “Fool me once, shame on you. Fool me twice; shame on me.” A second and more severe cyberattack on the protocol underscores major vulnerabilities within its security framework that must be swiftly addressed.
Find out more about security threats plaguing the industry and how to stay safe:
Crypto Hack Alert: New SpyAgent Malware Targets Android
Ethereum insiders are still offloading the native token. Read about the latest sale here:
Ethereum Foundation Continues ETH Sell-Off with $258K Dump
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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