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Radiant Capital’s $50M Crypto Exploit
Radiant Capital was struck by one of the most advanced DeFi attacks ever recorded on October 16, 2024, resulting in losses exceeding $50 million. Hackers infiltrated the company’s systems through malware injection, targeting the hardware wallets of at least three key developers. The exploit, which took place during a routine emissions adjustment process, allowed attackers to manipulate transactions via the Safe{Wallet} platform, tricking users into signing off on malicious transfers.
The breach was particularly devastating as it targeted Radiant’s lending pools on Binance Smart Chain and Arbitrum. By exploiting the “transferFrom” function, the attackers siphoned assets from users who had pre-approved the lending pools. Among the $50 million stolen were significant holdings of Binance Coin (BNB) and Ether (ETH), along with other assets like USDC and Wrapped BNB. The stolen funds are now held across BNB Chain and Arbitrum networks.
Radiant Capital responded swiftly, pausing its lending markets on the affected networks and issuing warnings to users to revoke approvals on compromised contracts. Independent security organizations like SEAL911 and De.Fi quickly mobilized, advising users to protect their remaining funds.
The company has since engaged law enforcement, including the FBI, and is working with cybersecurity experts to trace and recover the stolen assets.
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The Future of DeFi Security in Question
The hack has raised serious concerns about the vulnerabilities in multisignature wallet setups, a key security measure across the DeFi sector. Radiant’s multisig process, which initially relied on 11 signers, has been overhauled, reducing the number of signers and increasing the approval threshold to safeguard future transactions. This breach has sparked a wider conversation in the DeFi industry, with experts pointing out the broader risks faced by platforms like Frax and Starknet, where a breach of just two signatures could expose hundreds of millions of dollars.
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In a post-attack advisory, Radiant outlined long-term security improvements, including stricter controls for signing off transactions and enhanced verification methods. The company has announced plans to relaunch its markets on Base and Ethereum networks, with fortified smart contracts to prevent similar incidents. The attack underscores the ongoing security challenges in decentralized finance, highlighting the need for robust and continuously evolving defense mechanisms to protect digital assets.
This article has been refined and enhanced by ChatGPT.
