Cross-chain lending protocol Radiant Capital was hacked for 1,900 ETH ($4.5 million), blockchain security and analytics firm PeckShield Inc. reported on X today.
“The root cause is not new: It basically exploits a time window when a new market is activated in a lending market,” PeckShield wrote. The security breach occurred six seconds after the new USDC +0.03% market was activated, the digital security firm explained.
Radiant Capital also acknowledged the issue on X, saying that the Radiant DAO Council has temporarily suspended its lending and borrowing markets on Arbitrum — a Layer-2 scaling solution on which Radiant Capital runs atop of — while the problem is being investigated.
In the post, Radiant said that the incident occurred due to an “issue with the newly created native USDC market on Arbitrum.” It also noted that it plans to publish a postmortem after the issue is resolved.
Radiant Capital also ensured in the post that no current funds are at risk, and operations would return to normal after the investigation is completed. Radiant Capital has not immediately responded to The Block’s request for further clarification via Telegram.
Sourced from cryptonews.net.
