Radiant Capital, a Binance-backed blockchain protocol specialized in cross-chain lending, fell victim to a cyberattack on Wednesday, resulting in the theft of over $50 million. De. Fi Antivirus, a Web3 security firm, reported that the attackers were able to gain control of three private keys necessary for protocol upgrades, allowing them to manipulate smart contracts on both the Arbitrum and Binance Smart Chain networks. The hackers were able to steal various cryptocurrencies, such as USDC, ETH, and BNB, using an exploit known as ‘transferFrom’ to transfer tokens directly from user accounts to their own.
As a result of the cyberattack, Radiant Capital suspended its lending operations on the BNB Chain and Arbitrum to prevent further unauthorized transfers. The hacker converted the stolen assets into 12,835 ETH, valued at $33.6 million, and 32,113 BNB, worth $19.4 million. The team at Radiant Capital is currently working with SEAL911, Hypernative, ZeroShadow, and Chainalysis to address the issue and assured users that updates will follow soon. Markets on Base and Mainnet have been paused until further notice to assess the situation and prevent any further breaches.
This recent cyberattack is not the first time Radiant Capital has fallen victim to such incidents. In January, the protocol experienced a security breach resulting in the loss of $4.5 million due to a smart contract flaw. The attack in October differed from the previous one, as this time, the hacker gained access to three signers, enabling them to transfer ownership and perform contract upgrades. The cryptocurrency sector has been experiencing an increase in targeted hacks, with over $120 million stolen in September 2024 through various incidents impacting both centralized and decentralized platforms.
The cryptocurrency community remains vigilant as attacks on blockchain protocols and exchanges continue to rise. It is imperative for platforms like Radiant Capital to strengthen their security measures and collaborate with cybersecurity firms to prevent such incidents in the future. The involvement of reputable organizations such as SEAL911, Hypernative, ZeroShadow, and Chainalysis demonstrates the concerted effort to address the security breach and ensure the safety of users’ funds. As the industry evolves, ongoing vigilance and proactive security measures are vital to protect against potential cyber threats and maintain trust within the cryptocurrency ecosystem.
The fallout from the cyberattack on Radiant Capital serves as a reminder of the vulnerabilities inherent in the decentralized finance space, highlighting the importance of robust security frameworks and proactive risk management strategies. The incident also underscores the need for increased collaboration within the cryptocurrency industry to combat evolving threats and safeguard users’ assets. By learning from past breaches and continuously enhancing security protocols, blockchain protocols and exchanges can mitigate the risks associated with cyberattacks and uphold the integrity of the digital asset ecosystem.
