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

Radiant Capital, a decentralized concern (defi) platform, confirmed connected Jan. 3, 2023, that it fell unfortunate to an onslaught which saw the “protocol accruing atrocious indebtedness successful the WETH market, totaling astir 1.3% of full protocol TVL” oregon $4.5 million. Radiant Capital has urged the hackers to found interaction with the defi level earlier instrumentality enforcement is brought in.

All Markets connected Arbitrum Paused

Radiant Capital, a decentralized concern (defi) platform, has confirmed that it fell unfortunate to a flash indebtedness onslaught connected Jan 2. The onslaught led to the “protocol accruing atrocious indebtedness successful the WETH market, totaling astir 1.3% of full protocol TVL.” According to an assessment of the hack carried retired by Peckshield, a blockchain analytics firm, Radiant Capital mislaid integer assets worthy $4.5 cardinal during the attack.

Today's hack connected @RDNTCapital results successful the nonaccomplishment of 1.9k eth (~$4.5m).

The basal origin is not new: It fundamentally exploits a clip model erstwhile a caller marketplace is activated successful a lending marketplace (forked from the fashionable Compound/Aave). The exploitation besides relies connected a known rounding… https://t.co/XogWUVO3po pic.twitter.com/x5X9ql8AGA

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

Peckshield stated that the attackers exploited a clip model erstwhile a caller marketplace was activated successful a lending market. The blockchain analytics steadfast said the onslaught would person been prevented if the caller marketplace was “activated with CF 0%.”

Meanwhile, successful a statement shared via X connected January 3, the defi level revealed that the Radiant Decentralized Autonomous Organization (DAO) Council has taken the precautionary measurement of pausing each markets connected Arbitrum. It added that an probe into the incidental is already underway.

Radiant Capital Still Solvent

The defi platform, however, insisted successful a societal media station that the protocol not lone remains solvent but is besides taking steps to let users affected by the onslaught to regain entree to their funds.

“The Radiant protocol is solvent, & a remediation program for the atrocious indebtedness volition beryllium implemented to re-capitalize the protocol wholly & springiness users afloat entree to their deposits. A projected program volition besides beryllium implemented for users astatine hazard of liquidation during the intermission play to guarantee nary users are penalized unfairly,” the defi level said.

In a informing to those down the attack, Radiant Capital urged the hackers to found interaction with the defi level earlier instrumentality enforcement is brought in. To users affected by the pause, Radiant Capital said it hopes to assistance the intermission wrong the adjacent 24 hours.

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