Radiant Capital suffers hacker attack, loses $4.5 million

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After the Orbit Chain bridge was hacked on January 1, 2024, causing a loss of $81.5 million, hackers continued to target Radiant Capital.

On the morning of January 3, 2024, blockchain security unit PeckShield warned that Radiant Capital had been hacked and expected to lose approximately 1,900 ETH (approximately $4.5 million).

According to PeckShield, the hack was caused by a vulnerability when creating new loans on Radiant, which was also discovered on Compound and Aave, two well-known lending protocols on Ethereum that Radiant imitates.

Hacking today @RDNT Capital Resulting in a loss of 1,900 eth (approximately $4.5 million).

The underlying reason is not new: it essentially exploits the window of time in the lending market (from the popular Compound/Aave fork) to activate a new market. The exploit also relies on known rounding… https://t.co/XogWUVO3po pic.twitter.com/x5X9ql8AGA

— PeckShield Corporation (@peckshield) January 2, 2024

After being alerted about the vulnerability, Radiant immediately decided to suspend all lending activity until the issue was resolved. At the same time, contact the hacker and hope to negotiate to recover the lost funds.

As a reminder, no action can be taken until the market on Arbitrum is unsuspended. Once the issue is fully resolved, a detailed postmortem will be released and the Arbitrum protocol will be operational once the investigation is complete.

— Radiant Capital (@RDNTCapital) January 3, 2024

Fortunately, the hack did not have a big impact on the price of Radiant’s RDNT token. As of this writing, RDNT is trading at around $0.32, with slight fluctuations over the past 24 hours. Meanwhile, Radiant’s TVL has stabilized at around $315 million, continuing to grow since mid-2023.

Radiant Capital’s TVL Volatility. Source: DefiLlama

It can be seen that after experiencing the “lost” year of 2023, hackers are trying to regain their position. In just three days into 2024, two consecutive hacking attacks occurred, with a total loss of US$86 million.

VIC encryption compilation

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