Radiant Capital Suffers $4.5 Million USD Attack
Lending project on Arbitrum, Radiant Capital, has been exploited by hackers, resulting in losses amounting to $4.5 million USD.
Radiant Capital Suffers $4.5 Million USD Attack. Photo: Radiant Capital
In an announcement posted on the morning of January 3rd, Radiant Capital (RDNT) stated it had received warnings about a vulnerability in its USDC lending operations on Arbitrum. After assessing the situation, the project decided to temporarily halt all lending/borrowing activities until the issue is resolved, while assuring users that their assets remain safe.
Today, we received a report of an issue with the newly created native USDC market on Arbitrum. After validation by Radiant developers and the wider Web 3 security community, the Radiant DAO Council paused lending/borrowing markets on Arbitrum temporarily while this is…
— Radiant Capital (@RDNTCapital) January 3, 2024
Blockchain security firm PeckShield confirmed that Radiant Capital was hacked, estimating losses of around 1,900 ETH, equivalent to $4.5 million USD.
The incident originated from a vulnerability during the creation of new loans on Radiant, which had previously been identified in Compound and Aave—two prominent lending protocols on Ethereum that Radiant's model emulates.
Today's hack on @RDNTCapital results in the loss of 1.9k eth (~$4.5m).
— PeckShield Inc. (@peckshield) January 2, 2024
The root cause is not new: It basically exploits a time window when a new market is activated in a lending market (forked from the popular Compound/Aave). The exploitation also relies on a known rounding… https://t.co/XogWUVO3po pic.twitter.com/x5X9ql8AGA
Today's hack on @RDNTCapital results in the loss of 1.9k eth (~$4.5m).
The root cause is not new: It basically exploits a time window when a new market is activated in a lending market (forked from the popular Compound/Aave). The exploitation also relies on a known rounding…
Message from Radiant Deployer to exploiterhttps://t.co/rvyqUgIIjN pic.twitter.com/YaOD7ZCPsz
— laurence (@functi0nZer0) January 2, 2024
Radiant subsequently sent a message to the hacker, expressing a desire to negotiate for the return of the stolen funds.
The price of Radiant's RDNT token was minimally affected by the news of the attack.
1-hour chart of RDNT/USDT pair on Binance at 08:20 AM on 01/03/2024
The Total Value Locked (TVL) in the project remains stable around $315 million USD, showing continuous growth since mid-2023.
Fluctuation in Radiant Capital's TVL. Source: DefiLlama (01/03/2024)
This is the second hacking incident in 2024, following Orbit Chain's bridge incident on January 1st, which caused losses amounting to $81.5 million USD.
