Loss of $4.5M in ETH Incurred by Radiant Capital During Flash Loan Attack

Radiant Capital Falls Victim to Hack Attack

Cross-chain lending protocol Radiant Capital has recently experienced a hack, resulting in the theft of 1900 ETH worth $4.5 million. However, the platform assures its users that their funds are not at risk and has suspended its lending and borrowing markets on Arbitrum as a precautionary measure.

Details of the Hack

The attack took place shortly after the introduction of a new stablecoin lending market. Security experts quickly identified the exploit, which involved manipulating an index parameter through a rounding precision error in Compound and Aave forks. This allowed the hacker to profit by repeatedly depositing and withdrawing funds. The attack targeted the time window when a new market is activated in a lending market.

Radiant’s Response and Investigation

Radiant Capital promptly acknowledged the issue and temporarily suspended its lending and borrowing markets on Arbitrum. The hack occurred due to a problem with the newly created native USDC market on Arbitrum. The platform is working to resolve the issue and plans to publish a comprehensive report on the incident.

Increase in Scammers

During this time, scammers took advantage of the situation by creating fake Radiant accounts on social media platforms. These scammers offered assistance to affected users and tricked them into clicking malicious links to gain access to their remaining funds. To protect themselves, users must be cautious and vigilant against hacking and phishing attempts.

Hot Take: Protect Your Crypto Assets With Vigilance

The recent hack on Radiant Capital serves as a reminder of the constant threat posed by hackers in the crypto space. As an investor, it is essential to remain vigilant against potential scams and phishing attempts. Always verify the authenticity of accounts and be wary of clicking on suspicious links. By taking proactive measures and staying informed about the latest security risks, you can better protect your crypto assets and maintain peace of mind in the ever-evolving world of decentralized finance.