Radiant Capital, a prominent player in the cryptocurrency space has fallen victim to a significant hacking incident. According to a report on X by the blockchain security and analytics firm PeckShield, the protocol lost a staggering 1,900 Ethereum (ETH), equivalent to approximately $4.5 million at current market rates.
Understanding the Exploit
Radiant Capital, known for its involvement in blockchain-based investment services, has now joined the growing list of platforms grappling with cyber threats. As per the report, the security breach occurred six seconds after an issue occurred with the newly created native USDC market on Arbitrum.
However, after validation by the Radiant Capital developers and the Web 3.0 community, the Radiant DAO Council temporarily suspended lending and borrowing on Arbitrum. This is to help the protocol investigate further, to avoid placing more risk on current funds.
Radiant Capital Postmortem Report Upcoming
Although Radiant Capital is yet to release detailed information about the breach, users are advised to exercise caution and monitor official communications from the platform. However, the protocol plans to publish a postmortem report detailing what went wrong with the protocol once the glitch has been resolved.
The action taken by the Radiant team further underscores the claim that users’ funds are secured and remain uncompromised. Undoubtedly, the impact of such a breach extends beyond the financial losses incurred by Radiant Capital and its users. Confidence in the broader cryptocurrency market may be temporarily shaken as the incident reminds one of the risks associated with digital assets.
It is crucial for platforms to prioritize security measures, conduct regular audits, and implement safeguards to prevent and mitigate potential breaches.
Crypto Market Records Lot of Hacks and Scams in 2023
As reported by Web 3.0 security firm Beosin, the crypto industry suffered huge losses of around $656 million owing to hacks, scams, and rug pulls in the first half of 2023.
The report highlighted 108 protocol attacks, resulting in a loss of $471.43 million. Additionally, phishing scams accounted for $108 million in losses, while 110 instances of rug pulls resulted in losses of $75.87 million.
Also, Jimbos protocol fell victim to a devastating attack resulting in a loss of 4090 Ether worth $7.5 million. As per the report, the attacker used a $5.9 million flash loan to carry out the hack.