Radiant Capital's Credit Protocol Loses $4.5 Million Due to Hack
Date: 2024-01-03 Author: Dima Zakharov Categories: BLOCKCHAIN
Radiant Capital, a cross-chain decentralized credit protocol, has confirmed a security breach involving a new liquidity pool on the Arbitrum network. The hackers managed to withdraw 1,900 ETH, equivalent to approximately $4.5 million.
According to the blockchain security company PeckShield, the perpetrators exploited a known vulnerability that arises during the launch of liquidity pools. Currently, Radiant Capital has suspended lending operations in Arbitrum pools and is conducting an investigation. The breach occurred just 6 seconds after the launch of a new lending market using the USDC stablecoin.
The root cause of the incident is not new, as the attackers took advantage of a short time window during the launch of the new lending market, as reported by PeckShield representatives.
Radiant's developers have confirmed that the incident resulted from issues with the recently launched USDC market on Arbitrum. A detailed report will be provided after the investigation. However, the developers emphasized that the funds of users in all other pools are secure, and full protocol operations will resume following the completion of the investigation.
It's worth noting that 116 cryptocurrency projects closed last year, with some of them collapsing after falling victim to hacking attacks.
