Radiant Capital recently fell victim to hackers who stole approximately $52 million in digital assets and a recent event may impact recovery.
The breach occurred when attackers exploited a vulnerability in Radiant’s smart contracts, allowing them to take control of the system and siphon funds from users’ wallets. This incident marks the second significant attack on Radiant in 2024, following a $4.5 million theft earlier in the year.
A recent report from cyber security firm, PeckShield revealed the hackers have now moved nearly all the stolen funds (20.5K Ether) from Arbitrum and BNB Chain to Ethereum – a move that could potentially make recovery harder.
Radiant Capital is a lending platform operating on decentralized networks, primarily on blockchains like the BNB Chain and Arbitrum. It enables users to borrow and lend cryptocurrencies without relying on traditional banks.
Radiant has grown in popularity, allowing users to use crypto as collateral for loans, similar to using a house or car as collateral in the real world.
The platform’s rapid development attracted many users by offering access to crypto-based lending and borrowing. However, despite its growth, it has faced security challenges, with hackers identifying and exploiting systemic vulnerabilities.
In the latest hack, attackers accessed Radiant’s multi-signature wallet, a crucial security feature requiring multiple approvals for certain actions, and used it to transfer funds out of the platform.
To make matters worse, a crypto-security firm trying to help Radiant users accidentally shared a link to a scam site, which could have led to even more funds being stolen. This added confusion and frustration for users trying to protect their remaining assets.
Radiant Capital’s team is now working with security experts to investigate the hack and prevent future attacks. Despite the setback, the company is committed to strengthening its security and regaining users’ trust.
In 2024, crypto hacking and ransomware attacks have surged significantly. According to Chainalysis, the value of stolen cryptocurrency by mid-year had already surpassed $1.58 billion, an 84% increase compared to the same period in 2023.
While the number of hacking incidents only rose slightly (about 2.8%), the amount stolen per hack has increased by nearly 80%. This rise is partly due to the surge in Bitcoin’s price, which jumped from around $26,000 in early 2023 to over $60,000 in 2024.
Hackers have returned to targeting centralized exchanges, which had been less common in recent years. A key incident was the hack of Japan’s DMM exchange, which resulted in $305 million being stolen in Bitcoin alone.
Ransomware payments have also grown significantly, with hackers targeting larger organizations capable of paying higher ransoms. The average ransom payment shot up from $200,000 in 2023 to $1.5 million in 2024.
