Radiant Capital has suspended lending operations on the BNB Chain and Base after this cross-chain lending protocol was hit by a cyber attack, resulting in a loss of over $50 million.
Radiant Capital temporarily suspends lending operations
Radiant Capital has temporarily paused its lending markets after the protocol was hit by a cyber attack, resulting in a loss of over $50 million on the BNB Chain and Arbitrum, according to information from Radiant and two security experts.
"Radiant Capital's contracts on BSC and ARB were exploited through the 'transferFrom' function, allowing the attacker to withdraw users' funds, including $USDC, $WBNB, $ETH, and other assets," the Web3 security firm De.Fi Antivirus said in a post on X platform on October 16.
De.Fi estimates that the attack withdrew around $58 million, similar to the assessment of the security firm Ancilia Inc.
"We have identified issues with Radiant's lending markets on Binance Chain and Arbitrum," Radiant shared on X. "At this time, we are working with SEAL911, Hypernative, ZeroShadow, and Chainalysis to address the incident and will provide updates as soon as possible. The markets on Base and Mainnet will be temporarily paused until further notice."
Cause of the attack
Radiant was controlled by a Multisignature wallet. The attacker is believed to have gained control of the private keys of the signers and then taken control of some smart contracts.
"Radiant Capital has been taken over, like a bully stealing someone's lunch money. The Multisignature has been compromised, leading to the transfer of ownership," Pop Punk, the anonymous co-founder of the g8keep platform, shared on X. "Cancel all approvals immediately. The damage has reached tens of millions of dollars."
Attacks on access control mechanisms have caused $316 million in damage, accounting for nearly 70% of the total amount stolen in cryptocurrency hacks in Q3 2024, according to a report by the security firm Hacken.
Multisignature is the primary security method for Web3 protocols but can create centralized points of attack.
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The article Radiant Capital suspends lending operations after the attack first appeared on CoinMoi.
