Radiant Capital Loses $50M in its Second Attack This Year

• Radiant Capital suffered a major attack on its BSC and ARB chains as per reports. 
• The cryptocurrency sector has lost $5.6 billion worth of funds in scams according to the FBI.

With the approaching US elections, there have been some intriguing advancements in the digital assets sector. Amid new announcements, members have also witnessed security concerns being raised. Recently, on Wednesday, the Cosmos Hub’s systems were identified as having security vulnerabilities and recommended for an audit. 

Meanwhile, the DeFi platform, Radiant Capital, encountered a blockchain attack in the past day for the second time since the beginning of 2024. According to Cyvers Alert reports, the platform witnessed a private key compromise in its BSC (BNB Smart Chain) and ARB chains that led to the loss of $50 million worth of funds. 

Cyvers, the on-chain detective, revealed a detailed analysis of how the attack happened. Radiant Capital, similar to other leading cryptocurrency firms, uses a multi-signature wallet for security. Its wallet requires 3/11 signatures out of which, the attacker had gained access to the private keys of three owners. Using these keys they signed off-chain and transferred the chains’ ownerships. 

Moreover, the attacker transferred the LendingPoolAddressesProvider ownership to a malicious contract. Following this they managed to alter the lending pool systems to steal the aforementioned funds. The $50 million funds included USDC, Wrapped BNB, and ETH tokens. 

What Happened With Radiant Capital’s Previous Hack? 

In January 2024, Radiant Capital was subjugated to a major attack during the launch of its USDC market in the ARB chain. The hacker stole ETH tokens worth $4.5 million according to reports. Additionally, following the attack the protocol temporarily suspended lending and borrowing. 

Meanwhile, the recent attacker was reported by Lookonchain as having swapped the stolen tokens to 12,835 ETH and 32,113 BNB. No identity of the hacker except  wallet addresses has been discovered yet. Finally, Radiant Capital announced that it has paused markets on Base and mainnet while working to rectify the situation. 

Notably, in a recent September report, the FBI recorded a significant $5.6 billion worth of funds that were lost to cryptocurrency scams. 

Highlighted Crypto News Today: 

Is BONK Poised to Break Through Key Resistance Levels?