Radiant Capital, a blockchain-based lending protocol, has fallen victim to a significant attack for the second time this year. The breach resulted in a staggering loss of over $50 million, as the hacker managed to seize control of three keys from the platform’s multi-signature wallet system, exposing a major security vulnerability. As a consequence, Radiant’s native altcoin, RDNT, experienced a rapid drop in value.
Details of the Radiant Capital Attack and Its Impact on the Altcoin Market
According to blockchain researchers, the hacker successfully gained access to three crucial keys within the blockchain contracts used by Radiant Capital. These contracts are controlled through a multi-signature wallet system. However, the hacker bypassed this system and took control of the keys. Specifically, De.Fi, a blockchain security firm, revealed that the attacker exploited the “transferFrom” function across the BSC and ARB platforms. The method of key acquisition remains unclear at this stage.
This isn’t the first time Radiant has faced such an incident. Earlier in January 2023, the platform experienced a similar breach, which resulted in a $4.5 million loss. This second attack, once again, delivers a significant blow to Radiant Capital’s altcoin project RDNT. Blockchain records show that the hacker stole a variety of tokens, including USDT, USDC, WBNB, and ETH, further unsettling investors and users.
Market Reaction and RDNT Token Price Drop
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Following the attack, Radiant Capital’s RDNT token plummeted in value. According to data from TradingView, the token’s price dropped from $0.719 to $0.648—a decline of roughly 10%. This sharp drop caused panic among token holders, leading Radiant’s team to take immediate action in an attempt to regain control of the situation.
Radiant Capital announced that they had reached out to security firms SEAL911, Hypernative, ZeroShadow, and Chainalysis to assist with their efforts to contain the situation. The team’s response and its plans to patch these vulnerabilities are being closely monitored by investors, as repeated incidents could severely damage the project’s reputation. It is clear that moving forward, the market and investors will demand tighter security measures.
Insider Threat or Phishing?
Tony Ke, head of security research at Fuzzland, noted that Radiant’s smart contracts are managed through a multi-signature wallet. However, speculation has arisen that the attack could have been the result of phishing or an insider threat. The possibility that the hacker had access to inside information has also raised concerns about the platform’s internal dynamics.
A Wake-Up Call for Blockchain Security
This attack on Radiant Capital highlights the persistent security risks facing blockchain projects. With trust in such platforms being shaken, users and investors are now forced to reevaluate their confidence in these systems. As such, Radiant will need to implement stronger security protocols to rebuild trust and mitigate the damage caused by this breach.
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