Radiant Capital: Cross-Chain Lending Protocol Radiant Hacked Losing 1,900 ETH, Details

Cross-Chain Lending Protocol Radiant Loses $4.4 Million In Hack, Details

January 3, 2024

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Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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Rug Pull Alert Scams and Hacks Cost Investors Millions in a Week

In a significant cybersecurity breach, the cross-chain lending protocol Radiant Capital has incurred a substantial loss of 1,900 ETH, equivalent to a staggering $4.5 million. The initial report on this incident was provided by Peckshield, a leading blockchain security and analytics firm.

Radiant Capital Loses 1,900 ETH In Hack

PeckShield, a blockchain security and data analytics firm, reported a recent hacking incident on RDNT Capital resulting in a loss of 1.9k ETH, approximately $4.5 million. The attack exploited a time window during the activation of a new market in a lending platform (forked from popular platforms Compound/Aave).

The exploit also took advantage of a known rounding issue in the current Compound/Aave codebase. The actor behind the incident, identified as https://arbiscan.io/address/0x826d5f4d8084980366f975e10db6c4cf1f9dde6d, executed the exploit just 6 seconds after the activation of the new USDC market.

PeckShield suggests a simple solution to prevent such exploits: ensuring that when a new market is added, it is activated with a CF (Collateral Factor) of 0%.

Pausing Lending/Borrowing Activity

Radiant Capital has reported an issue concerning the newly established native USDC market on Arbitrum. Following validation by Radiant developers and the broader Web 3 security community, the Radiant DAO Council has opted to temporarily halt lending and borrowing markets on Arbitrum to conduct a thorough investigation. It’s important to note that no existing funds are currently at risk.

Until the markets are resumed on Arbitrum, no further action can be taken, said Radiant. A comprehensive postmortem will be published once the issue is fully resolved, and regular protocol operations on Arbitrum will resume upon the completion of the investigation.

As we enter into 2024, security breaches continue to plague the crypto market. Last Sunday, December 31, Orbit Bridge, a leading cross-chain bridge protocol, witnessed a significant outflow of $81.5 million across multiple cryptocurrencies, raising concerns about a potential significant security breach.

The Orbit exploit encompasses five transactions that siphoned considerable amounts of stablecoins, wrapped Bitcoin, and Ethereum into separate wallets. Officer CIA further indicates that the attacker potentially compromised multi-signature signers, commencing the attack using funds from TornadoCash.