Radiant Capital Loses More Than $4.4 Million in Cyber attack

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The world of decentralized finance (DeFi) has witnessed another shocking incident, following an attack on Radiant Capital recently.

This time, cross-chain lending protocol Radiant Capital found itself in the eye of the storm following a flash loan attack that resulted in a significant loss of $4.5 million.

The exploit, identified as a cumulative precision issue in the newly created USDC market on Arbitrum, led to a temporary halt of its lending and borrowing markets.

The attack, described by blockchain security firm Beosin as a “flash loan attack,” was based on a code error that allowed the attacker to manipulate a critical parameter.

Taking advantage of a window of time during the activation of a new market in the system, the attacker executed repeated deposit and withdrawal operations, thus siphoning a total of USD 4.5 million in Ether from the protocol.

Radiant Capital acted quickly upon receiving reports of the issue in its native USDC market

The platform paused all activities on Arbitrum, assuring investors that no more funds were at risk.

They pledged to conduct a thorough investigation to determine the root cause of the attack and provide transparency into the incident.

However, the challenge was not just limited to the attack itself.

Flash Loan Attack: Radiant Capital Suffers USD 4.5 Million Losses on Arbitrum

Radiant Capital also had to deal with fake social media accounts, spreading phishing links that could affect unsuspecting users.

This prompted warnings about the need for caution until the situation was resolved and the Arbitrum markets were unblocked.

Despite the setback, Radiant Capital remains a decentralized lending protocol with cross-chain functionality.

According to DefiLlama, it has a total value locked of around USD 315 million, highlighting its relevance and position in the DeFi ecosystem.


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