Scam Alert

Radiant Capital Attack Caused Approximately $4.5 Million In Losses

Key Points:

Radiant Capital temporarily suspends its native USDC market on Arbitrum due to reported issues, pending investigation by the Radiant DAO committee.
PeckShield monitoring reveals a $4.5 million loss as attackers exploit a time window and a known code issue in Compound/Aave during the Radiant Capital attack.

Radiant Capital, a prominent player in the decentralized finance (DeFi) space, recently encountered issues with its newly established native USDC market on the Arbitrum network.

Radiant Capital Attack Causes USDC Market on Arbitrum Temporarily Suspended

Following reports, the Radiant DAO committee, consisting of developers and the wider Web 3 security community, has taken swift action by temporarily suspending the lending market on Arbitrum. Although no funds are currently at risk, the committee has initiated a thorough investigation to identify and address the concerns.

PeckShield monitoring revealed that the Radiant Capital attack resulted in a loss of 1,900 ETH, equivalent to approximately $4.5 million. The exploit capitalized on a time window within the lending market, akin to mechanisms found in popular platforms like Compound and Aave. The vulnerability, rooted in a known rounding issue in the current Compound/Aave code base, allowed attackers to activate a new market just 6 seconds after its deployment.

In a noteworthy move, the Radiant Capital contract deployer left a message on the blockchain addressing the attacker. The message conveyed a willingness to establish contact and engage in discussions about the exploited vulnerability.

The deployer speculated that the Radiant Capital attack might have been carried out by a white hat or gray hat for various reasons, expressing a desire to collaborate for future steps. The communication channel was established at RadiantBugNegotiation@radiant.capital.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.