Radiant Capital has suspended its lending marketplace after its cross-chain lending protocol suffered a cybersecurity breach of more than $50 million on the BNB chain and Arbitrum, Radiant and two cybersecurity experts said.
Web3 cybersecurity company De.Fi Antivirus reported on October 16 that “Radiant Capital contracts were exploited on the BSC and ARB chains using the ‘transferFrom’ function, which allowed the exfiltration of user funds, i.e. $USDC $WBNB $ETH etc. “There was,” he said. Post to the X platform.
De.Fi said in another It is estimated at $50 million.
“We are aware of problems in the Radiant lending market on Binance Chain and Arbitrum,” Radiant said in the X post.
“We are working with SEAL911, Hypernative, ZeroShadow, and Chainalytic and will provide updates as soon as possible. Markets on Base and Mainnet are paused until further notice,” Radiant said.
source: DeFi
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Radiant is controlled by a multi-signature wallet, or “multi-sig.” The attackers reportedly gained control of the private keys of multiple signers and then took control of multiple smart contracts.
“Radiant Capital stole the protocol like a school bully steals lunch money. “Multi-signatures have been compromised and ownership has been transferred.” Pop Punk, pseudonymous co-founder of token launch platform g8keep, said in an X post.
“Cancel all approvals. So far we have lost tens of millions of dollars,” Pop Punk added.
Losses across different attack types in 2024. Source: Hacken
Exploits of access control mechanisms accounted for $316 million, or nearly 70%, of all funds stolen in cryptocurrency hacks in the third quarter of 2024, according to a report by cybersecurity firm Hacken.
Multi-signature is the primary means of securing the Web3 protocol, but it can create a centralized point of failure that is vulnerable to attackers.
“Many contracts today rely on multi-signature, which is far from decentralized,” Sreeram Kannan, founder of re-staking protocol EigenLayer, said in an interview.
“Ultimately, users are not getting the trust that blockchain should provide,” Kannan added.
“We must go beyond that.”
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