Radiant Capital

“Radiant Capital Suffers $50 Million Loss in Second Major Blockchain Attack of 2024”

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Radiant Capital

Radiant Capital has faced a challenging year. In the latest blow, the blockchain protocol firm lost more than $50 million on Wednesday in a cyberattack. This marks the second major security breach this year.

Security experts reveal that the attackers gained control of Radiant Capital blockchain contracts by obtaining three of the private keys that manage the protocol. Web3 De.Fi, a security company, explained on Site X that the attackers exploited the ‘transferFrom’ feature on the BSC and ARB chains, allowing them to withdraw user funds, including USDC, WBNB, and ETH.

The platform is controlled by a multi-signature wallet with 11 signatories. De.fi noted that the attackers managed to obtain the private keys of three signatories, which was enough to update the platform’s smart contracts.

Radiant Capital offers a variety of services for borrowing, lending, and exchanging cryptocurrencies across blockchains. This isn’t the first time the protocol has been targeted; in January, Radiant lost $4.5 million in an unrelated hack due to a bug in its smart contracts.

At the time of writing, it remains unclear how the private keys were compromised. Some members of the Ethereum security team on Telegram speculated that the attack might have occurred due to a compromised frontend, leading legitimate Radiant key holders to inadvertently interact with malware.

Radiant acknowledged the hack on its official X account but did not provide specific details. “We are aware of an issue with Radiant Lending Markets on Binance Chain and Arbitrum,” the company said. “We’re actively collaborating with SEAL911, Hypernative, ZeroShadow, and Chainalysis to address the issue, and we’ll share updates as soon as we have more information. Markets on Base and Mainnet are suspended until further notice.”

Radiant is governed by the Decentralized Autonomous Community (DAO), which aims to “aggregate billions of fragmented liquidity on Web3 Money Markets into ONE secure, user-friendly, and capital-efficient omnichain,” according to its website.

This series of attacks underscores the pressing need for enhanced security measures in the blockchain industry, as firms like Radiant continue to be lucrative targets for cybercriminals.

Radiant Capital’s Mission and Challenges Ahead

Radiant Capital, governed by a Decentralized Autonomous Organization (DAO), has the goal of “aggregating fragmented liquidity across Web3 money markets into a secure, user-friendly, and capital-efficient omnichain.” However, repeated security breaches may hinder its mission and undermine user trust.

As blockchain technology continues to evolve, industry experts stress the need for heightened security protocols. Platforms like Radiant must work to ensure user funds are protected from future attacks.

Disclaimer: This article is a reimagined summary based on publicly available information and is intended for informational purposes only. It reflects the current understanding of the event as reported by various sources and may be subject to change as new information emerges. The content provided is not endorsed by Radiant Capital or any related entities. For the most accurate and detailed updates, please refer to official communications from Radiant Capital and other verified sources.

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