Radiant Capital, a cross-chain lending protocol, has made the decision to suspend its lending markets after a reported hack that resulted in a loss of $4.5 million. The attack specifically targeted one of the new markets dealing with USD Coin (USDC).
The attack, as identified by blockchain security platform Beosin, exploited a vulnerability related to an indexing issue in the protocol’s code base. This flaw, described as a “rounding problem,” resulted in a cumulative accuracy error, which the attacker capitalized on.
Beosin’s announcement detailed the manipulations made by the attacker, highlighting the exploitation of an index parameter that significantly inflated, leading to a precision error in the contract’s calculations. This allowed the attacker to generate profit through a series of deposits and withdrawals.
Arbiscanner confirmed the siphoning of $4.5 million worth of Ethereum (ETH) by the attacker from Radiant’s protocol. In response, Radiant Capital swiftly suspended its lending and borrowing markets on Arbitrum, assuring investors that no further funds were currently exposed to risk. They committed to conducting an extensive investigation and promised a comprehensive report once the assessment concluded.
This incident marks yet another cyberattack in the cryptocurrency space since the start of the year. Prior to this, scammers had targeted the Orbit Chain protocol, resulting in an $81.5 million theft. Despite the attack, the stolen funds in that case have remained inaccessible at the identified addresses. Orbit Chain’s team is actively collaborating with law enforcement agencies globally while conducting a thorough analysis to pinpoint the root cause of the breach.
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