Cross-chain lending protocol Radiant Capital was hacked for 1,900 ETH ($4.5 million), blockchain security and analytics company PeckShield Inc. reported on X Today.
“The root cause is not new: it actually exploits a time window in which a new market is activated in a credit market,” PeckShield wrote. The security breach occurred six seconds after the new one USDC
+0.09%
Radiant Capital too acknowledged the problem on Xsaying that the Radiant DAO Council has temporarily suspended its credit and lending markets on Arbitrum – a Layer-2 scale solution that Radiant Capital runs on top of – while the issue is investigated.
In the post, Radiant said the incident occurred due to an “issue with the newly created native USDC market on Arbitrum.” It also noted that it plans to publish a postmortem after the matter is resolved.
At his post, Radiant Capital also ensured that current funds would not be at risk and that operations would return to normal after the investigation was completed. Radiant Capital did not immediately respond to The Block’s request for further clarification via Telegram.
About the author
Danny Park is an East Asian reporter at The Block who writes about topics such as Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the demise of Terra-Luna and FTX. Based in Seoul, Danny has previously written and produced video content for media companies in Korea, Hong Kong and China. He holds a bachelor’s degree in journalism and business marketing from the University of Hong Kong.
