Radiant Capital Hit by Security Breach, Loses 1,900 ETH

In an unsettling turn of events, Radiant Capital, a notable cross-chain lending protocol, was infiltrated, leading to the loss of an estimated 1,900 ETH, equivalent to roughly $4.5 million. Uncovered by PeckShield Inc., a renowned blockchain security and data analytics firm, the breach was traced back to a timing exploit that emerged upon the introduction of a new market on the lending platform.

Timing Exploit: The Crux of the Breach

The attack took place a mere six seconds after Radiant Capital launched its new USDC market. The timing exploit, a known vulnerability in the crypto world, manifests when a new market is initiated on a lending platform. This exploit was effectively leveraged by the cybercriminals to perpetrate the security breach and siphon off the substantial amount of cryptocurrency.

Immediate Response: Halting Operations

Upon discovery of the incident, Radiant Capital's DAO Council acted promptly, suspending all lending and borrowing operations on its platform. The platform, functioning on Arbitrum, an Ethereum-based second-layer scaling solution, had to halt operations to avoid the risk of further exploitation. This strategic move also enabled a comprehensive investigation into the breach.

Addressing the Breach: Measures in Effect

Radiant Capital has openly acknowledged the incident and is currently tackling the security issue. While operations remain on hold, no current funds are reported to be at risk. The company assures its users that operations will resume as usual once the investigation is concluded and the security loophole is effectively addressed.