Cross-chain lending protocol Radiant Capital was hacked for 1,900 ETH ($4.5 million), blockchain security and analytics firm PeckShield Inc. reported on X today.
“The root cause is not new: It basically exploits a time window when a new market is activated in a lending market,” PeckShield wrote. The security breach occurred six seconds after the new market was activated, the digital security firm explained.
Radiant Capital also acknowledged the issue on X, saying that the Radiant DAO Council has temporarily suspended its lending and borrowing markets on Arbitrum — a Layer-2 scaling solution on which Radiant Capital runs atop of — while the problem is being investigated.
In the post, Radiant said that the incident occurred due to an “issue with the newly created native USDC market on Arbitrum.” It also noted that it plans to publish a postmortem after the issue is resolved.
Radiant Capital also ensured in the post that no current funds are at risk, and operations would return to normal after the investigation is completed. Radiant Capital has not immediately responded to The Block's request for further clarification via Telegram.
About Author
Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.