Blockchain lending platform hit by private key compromise; trading paused as investigation unfolds.
Radiant Capital, a blockchain lending protocol, recently experienced a significant security breach, resulting in the loss of over $50 million. This marks the second major attack on the platform in 2024. The breach was caused by a compromise of private keys, which allowed attackers to exploit the system and drain user assets.
The attackers managed to gain control over three out of eleven private keys associated with Radiant Capital. By doing so, they were able to manipulate smart contracts on the Arbitrum and Binance Smart Chain networks. The exploit involved the 'transferFrom' function, which enabled the unauthorized transfer of cryptocurrencies such as USDC, ETH, and BNB from users' wallets.
In response to the attack, Radiant Capital has paused trading on the affected markets. The company is actively working with security firms to investigate the breach and understand the exact method used by the hackers. Users have been advised to avoid any interactions with Radiant until further notice to prevent further losses.
Radiant Capital is taking steps to enhance its security protocols to prevent future incidents. This includes a thorough review of their private key management and smart contract security. Users are encouraged to stay informed about the situation and follow any guidance provided by Radiant Capital to safeguard their assets.
