- Radiant Capital exploit moved $52M to Ethereum, targeting Arbitrum and BNB Chain.
- Post-exploit, Radiant’s total value locked plummeted by 66%.
- Hackers used malware to control Radiant’s multisig wallet, draining $50M.
On October 16, the cross-chain decentralized lending platform Radiant Capital became the target of a large-scale cyberattack. The attackers’ exploit led to an estimated $50 million theft through a malware attack on Arbitrum operations on the chain.
The attackers performed a well-orchestrated attack by ensuring that three core Ethereum developers lost control of their hardware wallets. Thus, they took control of the Radiant Capital multi-signature wallet before processing fraudulent transactions.
PeckShield Tracks Stolen Funds Across Networks
Blockchain security firm PeckShield has been closely monitoring the movements of the stolen funds. On October 24, they reported a substantial transfer of nearly all the illicit gains from layer-2 networks such as Arbitrum and the Binance BNB Chain to the Ethereum network.
This shift involved approximately 20,500 Ether, valued at around $52 million. The choice of Ethereum is strategic, providing the hackers with more options to obscure the origin of the funds through mixing services or decentralized exchanges, a common practice observed in other notable DeFi exploits this year.
Urgent Measures and Warnings Issued
In response to the incident, Radiant Capital has taken immediate steps to mitigate further risks. The platform has temporarily halted lending markets and issued urgent advisories to its users to revoke permissions to affected intelligent contracts to prevent additional unauthorized withdrawals.
These instructions were emphasized through its communications on various platforms, including an October 23 directive urging users to use revoke cash to safeguard their assets.
Moreover, the DeFi provider remains committed to rectifying the hack’s aftermath. Collaborating with law enforcement and cybersecurity experts, Radiant Capital is focused on tracing and potentially freezing the transferred funds to prevent further dispersion through crypto mixers or exchanges. This incident has highlighted the critical need for enhanced security measures and vigilant operational practices within the DeFi sector.
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