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.
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.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
