Markets News Report
January 03, 2024

Radiant Capital’s Hack Leads to Loss of 1,900 ETH Worth $4.5 Million

In Brief

Radiant Capital was hacked for 1,900 ETH worth $4.5M, the company announced a temporary suspension while facilitating an investigation.

Security Breach at Radiant Capital Results in Compromise of 1,900 ETH

Cross-chain lending protocol Radiant Capital experienced a security breach, resulting in a loss of 1,900 ETH, approximately valued at $4.5 million. The company announced a temporary suspension of its lending and borrowing markets on Arbitrum, a Layer 2 scaling solution on which Radiant Capital runs atop of, while facilitating an investigation into the incident.

Blockchain security and analytics firm PeckShield reported that the security breach took place within six seconds of the activation of a new market. The exploit targeted this specific time window when a new market was activated in a lending market. 

Radiant Capital clarified that the incident arose from an “issue with the newly created native USDC market on Arbitrum.” The company also stated its intention to release a postmortem report once the matter is resolved. 

Currently, there is no imminent risk to funds, and normal operations are expected to resume following the completion of the investigation.

In recent times, the dynamic landscape of decentralized finance (DeFi) has observed a concerning trend as projects find themselves vulnerable to sophisticated hacking attempts.

DeFi Projects Face Escalating Cyber Attacks

Cross-chain lending protocols, designed to facilitate seamless borrowing and lending of assets across different blockchain networks, are increasingly becoming targets for bad actors seeking to exploit potential vulnerabilities in their smart contracts.

Recently, DeFi lending protocol Euler Finance experienced an exploit leading to an almost $200 million loss. The attacker utilized a flash loan to conduct the attack.

According to a report from TRM Labs, the Euler Finance attack ranked among the most impactful infrastructure attacks of 2023, involving unauthorized access to a system’s underlying infrastructure.

The recent hacking incident on the cross-chain lending protocol Radiant Capital highlights the increasing risks faced by DeFi projects. This occurrence reflects a broader trend in the DeFi space, emphasizing the necessity for improved security measures within the ecosystem.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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