Radiant Capital’s Arbitrum and BNB Chain Instances Suffer a $51M Hack Attack

Decentralized lending protocol Radiant Capital has suffered a hack attack, losing $50 million in crypto assets. The hacker exploited a vulnerability in private keys to the protocol's multi-sig wallet, allowing control of its smart contracts.

The exploit affected Radiant Capital's BNB and Arbitrum instances, with the hackers draining millions in assets, including Ether, USDC, and wrapped BNB (WBNB).

Radiant Loses $51M in Crypto in A Suspected Exploit

Blockchain security firm Ancilia Inc. has revealed a hack attack on Radiant Capital, a leading cross-chain lending protocol.

#ancilia_alerts It seems like something happen with @RDNTCapital contract on BSC. We have noticed several transferFrom user's account through the contract 0xd50cf00b6e600dd036ba8ef475677d816d6c4281. Please revoke your approval ASAP. It seems like the new implementation had...

- Ancilia, Inc. (@AnciliaInc) October 16, 2024

According to reports, the attacker leveraged a vulnerability in the protocol's transferFrom multi-sig wallet system.

~$58,000,000 Exploit Alert

Radiant Capital contracts were exploited on BSC & ARB chains with the 'transferFrom' function, which allowed to drain users' funds, namely $USDC $WBNB $ETH and others

Revoke approvals ASAP
0xd50cf00b6e600dd036ba8ef475677d816d6c4281 pic.twitter.com/oUHyshwEmL

- De.Fi Antivirus Web3 (@De_FiSecurity) October 16, 2024

This allowed them to gain unauthorized access to user accounts and withdraw millions of dollars in ETH, USDT, BNB, and USDC.

According to data from Arkham Intelligence, the exploit started on Wednesday on the protocol's Arbitrum instance before moving to the BNB chain.

Radiant uses a multi-signature wallet system called transferFrom to secure and control their smart contracts.The exploit used the transferFrom function of Radiant Capital's smart contract to compromise the private keys to its multi-sig wallet.

As a result, the hacker gained unauthorized access to several user accounts and withdrew their funds to another account. They reportedly moved the tokens from a wallet controlled by Radiant to an address beginning with 0x0629b, supposedly belonging to the hacker.

The address holds over $32 million in Arbitrum-based tokens and about $18 million in BNB Chain assets. Most of the assets are Ether derivatives wstETH and weETH.

The wallet's BNB balance currently shows over $5 million in crypto assets. Meanwhile, its DeBank accountshowsa balance of $51 million in tokens, representing a 2,619,512% increase in its holdings since its creation.

Security Concerns and Radiant Capital's Response

In response to the latest breach, Radiant Capital suspended its Base and Mainnet markets. It also revealed that it is working with blockchain security firms Chainalysis, Hypernative, SEAL911, and ZeroShadow to investigate the incident.

In addition, the protocol said it delegated $10 million in funds to reimburse the victim. It has advised users to cancel all Radiant contract addresses to avoid further exploitation.

Community Notice:

With user security being our first concern, we recommend all users to temporarily revoke approvals to our contract until we further investigate the recent compromise.

Revoke approvals now: https://t.co/wwMDk4hNXI pic.twitter.com/JbkYfx7SvQ

- Radiarnt CapitaI (@RDNTCapitail) October 16, 2024

Fuzzland's security research lead, Tony Ke, has warned users not to interact with these contracts until every potential threat is resolved. Ke also promised that his firm would work with Radiant's team to investigate the matter and explore possible measures to recover lost funds.

The recent hack incident sparks concern about the security of multi-sig wallet systems.

The exact cause of this loophole remains to be determined. Some speculate it could be due to a front-end compromise or a phishing scam, which caused the private key holders to interact unknowingly with malware.

Industry experts have criticized Radiant for its inadequate security measures. The chief security officer at Polygon Labs, Mudit Gupta, described the incident as a key management failure." According to him, Radiant Capital's multi-sig wallet had eleven signers but required only three signatures to execute transactions.

The exploit has significantly impacted the price of Radiant Capital's native token, RDNT. Over the past 24 hours, the price of RDNT has declined by more than 11% and currently trades at $0.06429.

Meanwhile, this isn't Radiant Capital's first breach. In January this year, the lending protocol suffered a flash loan attack, losing about 1900 ETH valued at $4.5 million.

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