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Radiant Capital falls prey to this security hack, details here

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Radiant Capital falls victim to a cyber-attack, exposing vulnerabilities in its security. Here’s a look at what happened.

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  • Radiant Capital faced a cyber attack, resulting in a loss of over $4.4 million.
  • The breach prompts a temporary pause, leading to a decline in sentiment for both Radiant Capital and Arbitrum.

Radiant Capital [RDNT] is a platform that seeks to unify fragmented liquidity across various lending protocols and chains in the decentralized finance (DeFi) space. However, recent events have cast a shadow on its integrity as the platform fell victim to a malicious attack.

An attacker on the loose

Cyvers, a cybersecurity firm equipped with an AI-powered system, unearthed the nefarious activities targeting RDNTCapital.

The suspicious transactions flagged by their system pointed to a price manipulation issue, resulting in a staggering loss exceeding $4.4 million.

The attackers’ address was identified through multiple rugpull transactions on Arbitrum, unraveling the complexity of the exploit.

The modus operandi of the attack involved the address bridging 500,000 USDT to ETH, executing a swap to DAI, and ultimately depositing the funds into TornadoCash.

A swift response

Radiant Capital promptly addressed the breach via Twitter, acknowledging a report concerning the newly established native USDC market on Arbitrum.

The Radiant DAO Council swiftly responded by temporarily halting lending and borrowing markets on Arbitrum for a thorough investigation. Radiant Capital assured users that no current funds were jeopardized by the incident.

As the investigation unfolds, Radiant Capital emphasizes that no user action can be taken until the markets are reactivated on Arbitrum. A comprehensive postmortem report will follow, offering transparency once normal operations on the protocol resume.

Word on the street

The aftermath of this breach has repercussions not only for Radiant Capital but also for Arbitrum. The weighted sentiment surrounding both platforms experienced a decline, reflecting a negative perspective in the social domain.

The cyber attack has prompted a reevaluation of security measures and vulnerabilities within these DeFi ecosystems.

Realistic or not, here’s ARB’s market cap in BTC terms

Despite the breach’s impact on sentiment, RDNT’s price remained resilient, trading at $0.327795 with a modest growth of 1.45% in the last 24 hours.

Arbitrum’s native token, ARB, demonstrated a more significant growth, trading at $1.92 with an 11.24% increase in the same timeframe. The market’s response suggested that, at least at the time of writing, the breach has not significantly affected the perceived value of the tokens.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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