DeFi Lender Radiant Capital Exploited on Binance Smart Chain Following Upgrades

Radiant Capital, a decentralized finance project built on LayerZero, recently experienced significant losses due to an attack. The incident resulted in losses amounting to $18 million, as reported by real-time web3 security startup Ancilia. The breach appears to have originated from a backdoor contract deployed on the Binance Smart Chain (BSC) network.

Details of the Exploit

Ancilia’s investigation revealed that hackers initiated suspicious transactions from user accounts, indicating that additional Radiant customer funds might be at risk. The situation worsened when it was discovered that the compromise extended to the Arbitrum chain, raising the total losses to $50 million.

As of now, Radiant Capital has not released an official statement regarding the situation. Users are advised to revoke any malicious approvals and to avoid trading on Radiant Capital via Binance Smart Chain until further notice.

Impact on the Crypto Community

The hack on Radiant Capital is part of a series of recent security breaches in the crypto space. Last month, over $120 million was stolen from various DeFi protocols, with a significant portion attributed to the Radiant Capital exploit. Notably, $40 million was siphoned from the platform BingX, which has since resumed normal operations and is addressing the security issues.

Other services affected by similar attacks include Ethena Labs, Decentraland, Penpie, and Indodax. The cumulative impact of these breaches underscores the importance of robust security measures in the DeFi sector.

Increased Vigilance Against Crypto Crimes

Authorities are stepping up their efforts to combat crypto crimes. Legal actions and crackdowns on offenders are becoming more frequent. For instance, a U.S. hacker named Evan Frederick Light faces a potential 20-year prison sentence for a $37 million crypto theft.

“Authorities have become increasingly vigilant toward crypto crimes, opening lawsuits and issuing crackdowns on offenders.”

The escalating number of cybersecurity incidents highlights the need for ongoing vigilance and improved security protocols within the cryptocurrency and DeFi sectors.

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