Radiant Capital, a Binance-backed blockchain protocol specialising in cross-chain lending, experienced a cyberattack on Wednesday, with hackers stealing over $50 million. The attackers gained control of three out of eleven private keys required for protocol upgrades, allowing them to alter smart contracts on both the Arbitrum and Binance Smart Chain (BSC) networks. They stole various cryptocurrencies, including USDC, ETH, and BNB, using an exploit known as ‘transferFrom,’ which enabled them to transfer tokens directly from user accounts into their own.
After the breach, Radiant Capital suspended its lending operations on the BNB Chain and Arbitrum to prevent further unauthorized transfers. The hacker converted the stolen assets into 12,835 ETH, valued at $33.6 million, and 32,113 BNB, worth $19.4 million. The team is currently working with security firms, including SEAL911, Hypernative, ZeroShadow, and Chainalysis, to address the issue, and updates are expected to follow soon. Markets on Base and Mainnet are currently paused until further notice.
This is not the first time Radiant Capital has been targeted by hackers. Earlier in January, the protocol fell victim to a separate exploit, resulting in a loss of $4.5 million due to a smart contract flaw. However, the recent attack differs from the previous incident, as this time the hacker gained access to three signers, allowing them to transfer ownership and perform contract upgrades. In September 2024, the crypto industry suffered a series of targeted hacks, with attackers stealing over $120 million from multiple platforms, including BingX, Penpie, and Indodax, resulting in combined damages surpassing $90 million.
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The recent cyberattack on Radiant Capital highlights the ongoing security threats faced by blockchain protocols and crypto platforms. As the industry continues to attract significant investment and adoption, cybercriminals are increasingly targeting these platforms to steal valuable assets. It is essential for companies operating in the crypto space to invest in robust security measures, regular audits, and partnerships with cybersecurity firms to protect user funds and maintain trust in the industry.
The rise in targeted hacks and security breaches within the crypto industry underscores the importance of due diligence and risk management for investors and users. Understanding the security measures implemented by platforms and choosing reputable exchanges and protocols can help mitigate the risk of falling victim to cyberattacks. With the growing sophistication of cybercriminals, staying informed about the latest security threats and best practices in the crypto space is crucial for safeguarding investments and assets. Digital asset security will continue to be a top priority for the industry as it navigates the evolving landscape of cybersecurity threats.
