Radiant Capital, a DeFi lending platform, was hacked, resulting in losses exceeding $50 million. The incident raises serious concerns about multi-signature wallet security.
Radiant Capital, a decentralized finance (DeFi) lending platform, has suffered a significant security breach, resulting in the loss of over $50 million in user assets. The attack, which occurred on both the Binance and Arbitrum networks, has raised serious concerns about the vulnerabilities associated with multi-signature wallet systems in blockchain protocols.
On Wednesday, Radiant Capital was targeted by a cyberattack that exploited vulnerabilities in its smart contracts. Initial reports indicate that the attacker gained control of the protocol's multi-signature wallet, which is designed to require multiple approvals for transactions. However, the attacker managed to obtain the private keys of three out of the eleven signers, allowing them to drain funds from various liquidity pools.
According to estimates from multiple blockchain security firms, the total losses from the exploit range from $50 million to $58 million. The stolen assets included popular cryptocurrencies such as USDC, wrapped Bitcoin (wBTC), and wrapped Ethereum (wETH).
In response to the attack, Radiant Capital has suspended its lending markets on both the Binance Chain and Arbitrum networks. The platform is currently collaborating with several cybersecurity firms, including SEAL911, Hypernative, ZeroShadow, and Chainalysis, to investigate the breach and implement recovery measures.
Radiant Capital issued a statement acknowledging the issue and urged users to revoke access to specific smart contracts to prevent further losses. The contracts to be revoked include:
This incident highlights ongoing concerns regarding the security of multi-signature wallets in decentralized finance protocols. While these wallets are intended to enhance security by requiring multiple approvals for transactions, the low threshold of three signers in Radiant's case has drawn criticism from industry experts.
The attack also raises questions about the overall security practices within the DeFi space, particularly regarding how private keys are managed and protected. As the industry continues to grow, the need for robust security measures becomes increasingly critical.
The $50 million hack of Radiant Capital serves as a stark reminder of the vulnerabilities that exist within the DeFi ecosystem. As the platform works to recover from this incident, users are urged to remain vigilant and take necessary precautions to protect their assets. The incident underscores the importance of continuous security assessments and improvements in the rapidly evolving world of decentralized finance.
