- Radiant Capital experienced a large loss of over $50 million due to a cyber attack.
- Hackers took control of important keys and changed smart contracts.
- Users are now anxious about the safety of their funds on DeFi platforms.
Radiant Capital, a lending protocol backed by Binance Labs, experienced a cyber attack that caused major losses. The criminals stole over $50 million in various cryptocurrencies, as the incident shows continuous weaknesses in decentralized finance protocols. This marks the platform's second major breach in 2024.
The collision began on Wednesday afternoon and targeted Radiant’s Ethereum Layer 2 service. It later spread to the Binance smart chain. Hackers took control of private keys that belonged to multiple signers. As a result, they altered smart contracts and made unauthorized fund transfers. The security firm De.Fi reported that the attackers accessed three out of eleven private keys needed for procedure upgrades.
Details of the Attack
The stolen assets included important digital assets such as USDC, ETH, and BNB. Reports say the hacker's account held over $32 million in arbitrum-based Walllet and about $18 million in BNB Chain tokens. The perpetrators used a ‘transferFrom’ function that allowed them to move tokens directly from user accounts to their own wallets.
The spree led to many unauthorized transactions. Users mistakenly granted permission to fake wallet addresses, which allowed the transfers to happen. Ancilia, a crypto security firm, advised users to revoke any permissions linked to Radiant contracts right away. This step is important to protect their funds.
Market Impact and Security Measures
After the breach, Radiant Capital’s native token RDNT fell by 7%, speaking of which, currently, RDNT is down over 5%, trading at $0.067. This incident highlights the constant security issues in DeFi and leads to talks about the current safety measures. Additionally, reports from Hacken suggested that an access control breach allowed the hackers to manipulate the MultiSig pockets.
The hackers gained control of Radiant Capital’s Pool Provider contract. This change allowed a malicious entity to withdraw significant assets. Therefore, users rushed to revoke permissions to stop further losses. Unfortunately, Ancilia faced backlash after accidentally sharing a link to a wallet drainer.
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