Defi Platform Radiant Capital Loses Digital Assets Worth $4.5 Million After Flash Loan Attack

Radiant Capital, a decentralized finance (defi) platform, confirmed on Jan. 3, 2023, that it fell sufferer to an assault which noticed the “protocol accruing bad debt in the WETH market, totaling about 1.3% of total protocol TVL” or $4.5 million. Radiant Capital has urged the hackers to ascertain contact with the defi platform earlier than legislation enforcement is introduced in.

All Markets on Arbitrum Paused

Radiant Capital, a decentralized finance (defi) platform, has confirmed that it fell sufferer to a flash mortgage assault on Jan 2. The assault led to the “protocol accruing bad debt in the WETH market, totaling about 1.3% of total protocol TVL.” According to an assessment of the hack carried out by Peckshield, a blockchain analytics agency, Radiant Capital misplaced digital property price $4.5 million throughout the assault.

Today's hack on @RDNTCapital leads to the lack of 1.9k eth (~$4.5m).

The root trigger just isn’t new: It principally exploits a time window when a brand new market is activated in a lending market (forked from the favored Compound/Aave). The exploitation additionally depends on a recognized rounding… https://t.co/XogWUVO3po pic.twitter.com/x5X9ql8AGA

— PeckShield Inc. (@peckshield) January 2, 2024

Peckshield acknowledged that the attackers exploited a time window when a brand new market was activated in a lending market. The blockchain analytics agency mentioned the assault would have been prevented if the brand new market was “activated with CF 0%.”

Meanwhile, in a statement shared by way of X on January 3, the defi platform revealed that the Radiant Decentralized Autonomous Organization (DAO) Council has taken the precautionary step of pausing all markets on Arbitrum. It added that an investigation into the incident is already underway.

Radiant Capital Still Solvent

The defi platform, nevertheless, insisted in a social media submit that the protocol not solely stays solvent however can be taking steps to permit customers affected by the assault to regain entry to their funds.

“The Radiant protocol is solvent, & a remediation plan for the bad debt will be implemented to re-capitalize the protocol entirely & give users full access to their deposits. A proposed plan will also be implemented for users at risk of liquidation during the pause period to ensure no users are penalized unfairly,” the defi platform mentioned.

In a warning to these behind the assault, Radiant Capital urged the hackers to ascertain contact with the defi platform earlier than legislation enforcement is introduced in. To customers affected by the pause, Radiant Capital mentioned it hopes to elevate the pause inside the subsequent 24 hours.

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