Cross-Chain Lending Protocol Radiant Capital Suspends Lending Markets
Radiant Capital, a cross-chain lending protocol, has temporarily suspended its lending markets following a reported $4.5 million hack that impacted one of its USD Coin (USDC) markets.
Attack Linked to Instant Credit and Code Rounding Problem
The attack has been linked by blockchain security platform Beosin to the use of instant credit, with the attacker exploiting a “rounding problem” in the code base that resulted in a cumulative accuracy error. The attacker took advantage of this issue to profit from repeated deposits and withdrawals of assets.
“The attacker manipulated the index parameter to become extremely large, causing a cumulative precision error due to a rounding issue in the contract’s calculations.”
Beosin announcement
$4.5 Million Siphoned from the Protocol
The attacker managed to siphon $4.5 million in Ethereum (ETH) from Radiant Capital, according to Arbiscanner.
Lending and Borrowing Markets Suspended
Radiant Capital has also suspended its lending and borrowing markets on Arbitrum. However, they have assured investors that no additional funds are currently at risk. The protocol plans to conduct a thorough investigation and restore normal operations once the autopsy is complete.
Continued Hacks in 2024
This hack is not an isolated incident. Prior to this, scammers targeted the Orbit Chain protocol, resulting in $81.5 million worth of stolen cryptocurrency. The project team is actively working with law enforcement agencies and conducting an analysis to identify the root cause of the attack.
Hot Take: Radiant Capital Faces $4.5 Million Hack
Radiant Capital, a cross-chain lending protocol, has been hit by a $4.5 million hack, affecting one of its USD Coin markets. The attack was linked to the use of instant credit and a code rounding problem. The attacker managed to siphon the stolen funds from the protocol, prompting Radiant Capital to suspend its lending markets temporarily. However, the company reassured investors that no additional funds were at risk. This incident follows a string of hacks in 2024, with scammers targeting various protocols. Radiant Capital is conducting an investigation and plans to resume normal operations once the autopsy is complete.
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