Radiant

Arbitrum

Radiant Capital

USDC

Security

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 <p class=""><strong>In the world of blockchain and cryptocurrencies, security breaches can disrupt the operations of even the most sophisticated platforms. <em>Radiant Capital</em>, a prominent cross-chain lending protocol, recently found itself at the centre of a significant security incident, resulting in the theft of approximately $4.5 million worth of Ethereum.</strong></p>
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    <p lang="en" dir="ltr">Radiant Capital @RDNTCapital was under a flash loan attack with a loss of $4.5M.<br>Attacker: https://t.co/L7fXlF8VXP<br><br>The attacker manipulated the index parameter (which later served as a denominator) to become extremely large. The contract has a rounding issue in its… pic.twitter.com/8AdY7pjaKE</p>— Beosin Alert (@BeosinAlert) January 3, 2024
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 <h3 class="wp-block-heading" id="radiant-capital-a-cross-chain-lending-protocol">Radiant Capital: A Cross-Chain Lending Protocol</h3>
 <p class=""><strong>Radiant Capital is a cross-chain lending protocol</strong> that operates on the <strong>Arbitrum Layer-2 scaling solution</strong>. It allows users to lend and borrow cryptocurrencies seamlessly across different blockchains. However, the platform’s security was compromised when malicious actors exploited a known vulnerability in the codebase.</p>
 <h3 class="wp-block-heading" id="the-attack-unveiled">The Attack Unveiled</h3>
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    <p lang="en" dir="ltr">Today's hack on @RDNTCapital results in the loss of 1.9k eth (~$4.5m). <br><br>The root cause is not new: It basically exploits a time window when a new market is activated in a lending market (forked from the popular Compound/Aave). The exploitation also relies on a known rounding… https://t.co/XogWUVO3po pic.twitter.com/x5X9ql8AGA</p>— PeckShield Inc. (@peckshield) January 2, 2024
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 <p class=""><strong>PeckShield</strong>, a blockchain security and analytics firm, first reported the breach. According to <strong>PeckShield</strong>, the attacker took advantage of a specific time window while activating new markets in lending protocols. The breach occurred just six seconds after activating<strong> Radiant Capital’s new USDC market on Arbitrum</strong>.</p>
 <h3 class="wp-block-heading" id="radiant-capital-s-response">Radiant Capital’s Response</h3>
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    <p lang="en" dir="ltr">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…</p>— Radiant Capital (@RDNTCapital) January 3, 2024
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 <p class=""><strong><em>Radiant Capital</em></strong> swiftly acknowledged the breach in an <strong><em>official post</em></strong>. They confirmed the details of the exploit and took immediate action. <strong>The Radiant DAO Council</strong> temporarily suspended its lending and borrowing markets on <strong>Arbitrum</strong> while launching a comprehensive investigation.</p>
 <p class=""><strong>In the company’s post, Radiant Capital </strong>reassured its users that their current funds were not at risk. They emphasised that normal operations would resume once the investigation was completed. Furthermore, <strong>Radiant Capital</strong> committed to releasing a detailed postmortem report to provide transparency regarding the incident’s specifics.</p>
 <h3 class="wp-block-heading" id="understanding-the-exploit">Understanding the Exploit</h3>
 <p class=""><strong>Security experts</strong> identified the exploit as a <strong>flash loan attack</strong>, which has become increasingly prevalent in the <strong>DeFi space</strong>. The attacker leveraged a <strong>“known rounding issue”</strong> in the codebase, leading to a cumulative precision error. This error allowed the attacker to profit from repeated deposit() and withdraw() operations within the platform.</p>
 <h3 class="wp-block-heading" id="conclusion">Conclusion</h3>
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    <p lang="en" dir="ltr">In light of the recent events, many imitation accounts will likely spread misinformation or fake links. Always verify information from our official channels. <br><br>Twitter: https://t.co/XTaOKteG8G<br>Discord: https://t.co/b5bJXVULBc<br>Telegram: https://t.co/d6nRwvb2bv</p>— Radiant Capital (@RDNTCapital) January 3, 2024
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 <p class=""><strong>The Radiant Capital security breach</strong> is a stark reminder of the ongoing challenges faced by<strong> DeFi platforms</strong> and the broader <strong>cryptocurrency industry</strong>. It underscores the critical importance of rigorous security measures and rapid response protocols in the face of evolving <strong>cyber threats</strong>.</p>
 <p class=""><strong>The crypto community</strong> must remain vigilant as <strong><em>Radiant Capital</em></strong> continues its investigation and pledges transparency through the postmortem report. Collaborative efforts between platform developers, security experts, and users are essential to fortify the industry against malicious actors.</p>
 <p class=""><strong><em>While Radiant Capital</em></strong> has taken steps to mitigate the breach’s impact and secure its users’ assets, the incident highlights the need for ongoing diligence in the ever-changing landscape of blockchain technology.</p> 
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/radiant-capital-navigating-a-4-5-million-ethereum-security-breach-tbt75466.html">https://thebittimes.com/radiant-capital-navigating-a-4-5-million-ethereum-security-breach-tbt75466.html</a></p>

Radiant Capital: Navigating a $4.5 Million Ethereum Security Breach

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