Radiant Capital falls prey to this security hack, details here
- 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.
🚨ALERT🚨Our AI-powered system has identified multiple #rugpull transactions on #ARB linked to this address: https://t.co/GZKVDypuAh. The address has been involved in creating numerous tokens.
The address has bridged 500K $USDT to $ETH, then swapping it to $DAI before depositing… pic.twitter.com/4l8JmdXmcd
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) January 2, 2024
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.
Today, we received a report of an issue with the newly created native USDC market on Arbitrum. After validation by Radiant developers and the wider Web 3 security community, the Radiant DAO Council paused lending/borrowing markets on Arbitrum temporarily while this is…
— Radiant Capital (@RDNTCapital) January 3, 2024
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.