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Radiant Capital exploited for $50 million on BNB and Arbitrum

Radiant Capital exploited for $50 million on BNB and Arbitrum

GrafaGrafa2024/10/17 00:20
By:Isaac Francis

Radiant Capital experienced a major security breach on Wednesday, with the lending protocol losing $50 million across BNB Chain (CRYPTO:BNB) and the Ethereum (CRYPTO:ETH) layer-2 network Arbitrum (CRYPTO:ARB).

The incident was first flagged by blockchain security firm Ancilia Inc., which reported suspicious activity on a Radiant Capital smart contract on BNB Chain.

The company noted that the hackers had drained at least $16 million from Radiant's pools on BNB.

Following the breach on BNB Chain, similar attacks occurred on Arbitrum, targeting various trading pools.

Hacken, another security firm, estimated that around $50 million in assets, including USDT (CRYPTO:USDT), USDC (CRYPTO:USDC), and ARB, were siphoned off from Radiant's pools on both chains.

Radiant Capital confirmed the issue through a post on Twitter (now X), stating that they were aware of an ongoing problem affecting their lending markets on Binance Chain and Arbitrum.

The project did not immediately classify the incident as a cyberattack but assured users that they were actively investigating the situation in collaboration with multiple security firms, including SEAL911, Hypernative, ZeroShadow, and Chainalysis.

In response to the attack, Radiant Capital has taken several measures to contain the situation.

The platform announced that it had paused lending markets on Ethereum and Base, advising users to revoke permissions to its smart contracts.

Users are directed to Revoke.Cash, which has set up a tool allowing them to check if their accounts are at risk.

Radiant Capital's latest exploit is not an isolated incident; earlier this year, the protocol lost over $4.5 million due to a flash loan exploit on Arbitrum.

The recent breach adds to the growing concerns about security vulnerabilities within decentralized finance (DeFi) platforms, highlighting the need for robust measures to protect digital assets.

The firm did not provide further details on the losses or any immediate recovery plans.

Radiant Capital remains under scrutiny, as users await updates on the actions taken to address the issue and prevent future incidents.

At the time of writing, the BNB price was $601.06, and the Arbitrum (ARB) price was $0.558.

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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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