Radiant Capital Faces $4.5 Million ETH Hack: Lending and Borrowing Markets Suspended

• Security Breach Details: PeckShield Inc. report exposes the exploit targeting Radiant Capital during the activation of a new USDC market.
• Radiant’s Assurance and Investigation: The platform suspends operations, ensuring no immediate risk to user funds while investigating the incident to ensure a secure environment before resuming activities.

Cross-chain lending platform Radiant Capital was recently targeted in a security breach resulting in a loss of 1,900 ETH, valued at $4.5 million, according to a report from blockchain security firm PeckShield Inc. The incident allegedly exploited a specific time window triggered by the activation of a new USDC market within the lending environment.

The breach occurred within a mere six seconds of the USDC market’s activation, PeckShield detailed, citing the vulnerability in the lending market’s setup as the root cause. Responding promptly, Radiant Capital took swift action, temporarily halting its lending and borrowing markets on Arbitrum, a Layer-2 scaling solution where the platform operates.

Radiant Capital addressed the matter in a statement, acknowledging the incident’s link to the newly established USDC market on Arbitrum. The platform assured users that an investigation is underway, committing to releasing a detailed postmortem report once the issue is fully resolved.

Despite the security breach, Radiant Capital asserted in its statement that the present funds remain secure and unaffected by the hack. The platform aims to resume normal operations once the investigation concludes. At present, Radiant Capital has not responded to The Block’s request for further clarification regarding the incident.

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Security Breach at Radiant Capital: Incident Details Unveiled

The hack targeting Radiant Capital for 1,900 ETH, valued at $4.5 million, has raised concerns regarding the security protocols and vulnerabilities within cross-chain lending platforms. PeckShield Inc.’s detailed report unveils the exploitative nature of the incident, pinpointing a time window related to the activation of a new USDC market.

Radiant Capital’s Response and Mitigation Measures

Radiant Capital’s proactive response following the breach underscores the platform’s commitment to user security. By temporarily suspending lending and borrowing markets and initiating an investigation, the platform aims to reassure users about the safety of their funds and intends to provide a comprehensive postmortem report for transparency and accountability.