Yello Paradisers! Radiant Capital, a cross-chain lending protocol, experienced a significant security breach resulting in the loss of approximately 1,900 Ethereum (ETH), valued at around $4.5 million.
Breach Exploits New Market Activation Vulnerability
PeckShield Inc., a blockchain security and analytics firm, reported the incident on X, explaining the hack exploited a vulnerability during the activation of a new USDC market. The breach occurred a mere six seconds after this market went live.
Radiant Capital Confirms Incident and Suspends Services
Acknowledging the security issue, Radiant Capital announced the temporary suspension of its lending and borrowing markets on Arbitrum, a Layer-2 scaling solution. This precautionary measure aims to allow for a thorough investigation into the breach.
Investigation and Assurance from Radiant Capital
Radiant Capital committed to conducting an in-depth investigation of the incident, specifically focusing on the “issue with the newly created native USDC market on Arbitrum.” The protocol reassured users that no current funds are at risk and promised to release a detailed postmortem report once the issue is resolved.
Normal Operations Await Resolution
Operations at Radiant Capital are expected to resume normalcy following the completion of the investigation. The protocol is yet to provide further clarification on the breach, with The Block awaiting a response to their request for more information.
