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Cross-chain lending protocol Radiant Capital has suspended its lending markets. 
The report states that Radiant Capital has received reports of a $4.5 million hack that affected one of the new USD Coin (<a href="https://crypto.news/price/usd-coin/">USDC</a>) markets. 
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 Today, we received a report of an issue with the newly created native USDC market on Arbitrum. After validation by Radiant developers and the wider Web 3 security community, the Radiant DAO Council paused lending/borrowing markets on Arbitrum temporarily while this is…— Radiant Capital (@RDNTCapital) <a href="https://twitter.com/RDNTCapital/status/1742338729925112272?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">January 3, 2024</a>
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Blockchain security platform Beosin <a href="https://twitter.com/BeosinAlert/status/1742389285926678784" target="_blank" rel="noopener">linked</a> the attack to using instant credit with the attacker taking advantage of a “rounding problem” in the code base, “which led to a cumulative accuracy error.” 
As a result, the attacker made a profit through repeated deposits and withdrawals of assets. 
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 “The attacker manipulated the index parameter (which later served as a denominator) to become extremely large. The contract has a rounding issue in its calculations, which led to a cumulative precision error.” <cite>Beosin announcement</cite>
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According to Arbiscanner, the attacker managed to siphon $4.5 million in Ethereum (ETH) from the protocol. 
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 <img loading="lazy" decoding="async" width="1024" height="215" src="https://crypto.news/app/uploads/2024/01/Screenshot-2024-01-03-at-09.45.01-1024x215.png" alt="Radiant Capital reports $4.5m flash loan attack - 30" class="wp-image-14233816">
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 Source: Arbiscanner
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Radiant also suspended the lending and borrowing markets on <a href="https://crypto.news/tag/Arbitrum/">Arbitrum</a> and assured investors that no additional funds were currently at risk. They promised to conduct a detailed autopsy and restore normal operations once the investigation is completed. 
The Radiant Capital <a href="https://crypto.news/biggest-crypto-hacks/">hack</a> was not the first case of attack by cybercriminals since the beginning of the year. Previously, scammers <a href="https://crypto.news/cross-chain-protocol-orbit-bridge-suffers-exploit-losses-surpass-80m/">hacked</a> the Orbit Chain protocol worth $81.5 million. 
According to the project team, <a href="https://crypto.news/orbit-chain-comments-on-recent-81m-exploit/">stolen cryptocurrency</a> “remains untouchable” at the addresses where they were discovered. They are now conducting a&nbsp;detailed analysis to determine the root cause of the hack and liaising with international law enforcement agencies. 
 Read more: <a href="https://crypto.news/crypto-hackers-managed-to-steal-2b-in-2023/"> Crypto hackers managed to steal $2b in 2023 </a>

Radiant Capital reports $4.5m flash loan attack

crypto.news

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