Radiant Capital Teams Up with FBI to Recover $50 Million Stolen in Sophisticated Crypto Hack

Crypto lending protocol Radiant Capital is working closely with U.S. law enforcement, including the FBI, to recover $50 million stolen in the recent hack.

The hackers used advanced malware to gain unauthorized access to several developer wallets. The hackers withdraw $50 million in crypto assets, including Ethereum, USDC, and BNB.

Sophisticated Malware Hack Targets Developers and Drains Assets from Radiant Capital

In an x post, blockchain lending protocol Radiant Capital disclosed updates about its latest hack exploitation.

On October 16, 2024, Radiant Capital experienced a highly sophisticated security breach that resulted in the loss of $50 million USD. The attackers exploited multiple developers' hardware wallets through a highly advanced malware injection.

The devices were compromised in such a...

- Radiant Capital (@RDNTCapital) October 18, 2024

According to the protocol, the attackers used advanced malware to compromise the hardware wallets of three main developers. This sophisticated hack attack was designed to manipulate the front-end transaction verification systemand exploitweak points in the DAO's blockchain contracts.

The attack affected the front end of the Safe Wallet, also known as Gnosis Safe. As a result, the wallet displayed authorized transactions while executing illegitimate transactions in the background.

The unusual activity went unnoticed during regular checks. Both Radiant Capital's internal security auditors, like SEAL911 and Hypernative, failed to detect it.

Consequently, the hackers drained approximately $50 million in USDC, WBNB, and ETH from Radiant Capital's Binance Smart Chain (BSC) and Arbitrum liquidity pools.

In response to the breach, Radiant Capital teamed up with cybersecurity experts to freeze the stolen assets and track down the attackers.

Radiant Capital is working with the FBI and other cybersecurity firms to recover the stolen funds. Additionally, the DeFi platform is analyzing the digital traces left by the attackers. It is also changing its DAO security protocols and multi-signature verification processes to prevent future breaches.

After the incident, Radiant Capital is focused on improving its measures and reducing the risk of future attacks. This includes using stricter multi-layer signature verifications and independent devices to check transaction data before approval.

Additionally, contributors have set up new cold wallet addresses to strengthen security. Contributors create these wallets with new, safe devices to remove any weaknesses.

The DAO has also improved the security of its Admin and DAO multisigs. It reduced the number of signers to seven and raised the signing threshold to four. That means any transaction needs nearly 60% approval to go through. Meanwhile, other safes will also receive similar upgrades soon.

Radiant Capital Strengthens Security Measures as Crypto Hacks Rise and Law Enforcement Cracks Down

Contributors are now adding an extra verification step. They will cross-check transaction data using Etherscan's input data decoder. This additional check improves accuracy and helps prevent mistakes.

Also, the decentralized platform plans to resume activity in the Base and Ethereum markets within a few days. The organization is deploying new contracts with better security measures in the affected markets. These changes will strengthen the infrastructure and project against similar attacks in the future.

Law enforcement is working harder to tackle the problem as crypto hacks increase. Recently, U.S. prosecutorstook actionagainst Ilya Lichtenstein, the mastermind behind the 2016 Bitfinex hack.

Notably, this hack resulted in the theft of $6 billion in cryptocurrency.The prosecutors are seeking a 5-year prison sentence for him. This development shows that authorities are serious about stopping crypto crime and holding those responsible accountable.

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