Radiant Capital Loses $4.5 Million in Hack
Radiant Capital, a cross-chain lending protocol, has been hacked, resulting in the loss of 1,900 ETH (approximately $4.5 million). The hack occurred shortly after the activation of a new USDC market in the lending system. The attacker took advantage of a “rounding issue” in the codebase, allowing them to profit through repeated deposit and withdrawal operations.
Investigation Underway
Radiant Capital is currently investigating the incident and has temporarily suspended lending and borrowing markets on Arbitrum. They have identified the issue as an “issue with the newly created native USDC market on Arbitrum” and assure users that a postmortem report will be published once the problem is resolved.
Fake Accounts and Phishing Links
Amidst the security breach, fake Radiant Capital accounts have emerged, spreading phishing links under the guise of assisting users in revoking approvals. This adds further challenges to managing the aftermath of the hack.
Rampant Flash Loan Attacks
Flash loan attacks continue to pose security challenges in various blockchain ecosystems. Recent incidents include Platypus Finance losing over $2 million and Sturdy Finance experiencing multiple hacks resulting in significant losses. These incidents highlight the need for enhanced security measures within decentralized finance protocols.
Hot Take: Flash Loan Attacks Highlight Security Risks in DeFi
The hack on Radiant Capital showcases the ongoing security risks faced by decentralized finance protocols. Flash loan attacks have become increasingly rampant, exploiting vulnerabilities in codebases and causing substantial financial losses. As the popularity of DeFi grows, it is crucial for protocol developers to prioritize robust security measures to protect user funds. Additionally, users should exercise caution and remain vigilant against phishing attempts and fake accounts. The industry must collaborate to address these security challenges and foster a safer DeFi ecosystem.
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