Cross-chain lending protocol Radiant Capital (RDNT) fell victim to a hack on Tuesday, resulting in the theft of 1,900 ETH, worth approximately $4.5 million.
Cross-chain lending protocol Radiant Capital (RDNT) fell victim to a hack on Tuesday, resulting in the theft of 1,900 ETH, worth approximately $4.5 million. PeckShield attributed the hack to a known vulnerability that exploits a time window when a new market is activated in a lending market. The security breach occurred just six seconds after the new USDC market was activated on Radiant Capital.
Radiant Capital stated on X that the Radiant DAO Council has temporarily suspended its lending and borrowing markets on Arbitrum, a Layer-2 scaling solution on which Radiant Capital operates, while the issue is being investigated.
In a subsequent tweet, Radiant Capital explained that the hack was caused by "an issue with the newly created native USDC market on Arbitrum." The protocol also assured users that no current funds are at risk and that operations would return to normal once the investigation is completed.
Following the hacking incident, RDNT declined by over 19% to $0.266, but staged a quick recovery back to $0.346. The RDNT token is currently down 4.21% in the past 7 days.
The hack highlights the ongoing security risks associated with DeFi protocols, particularly those involving cross-chain transactions. Radiant Capital is the latest in a series of DeFi protocols to be targeted by hackers in recent months. Recently, cross-chain bridge Orbit Chain was targeted in an exploit, losing over $81 million in assets.
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