Decentralized finance (DeFi) platform Radiant Capital is working with U.S. law enforcement to freeze assets stolen during a $50 million hack earlier this week.
Details of the Attack
During the attack on Radiant Capital, hackers utilized an advanced malware injection method to take control of multiple developers’ hardware wallets. The attack exploited the Safe Wallet interface, displaying legitimate transaction data while secretly signing and executing harmful transactions in the background.
In response to the attack, Radiant Capital stated that it has implemented stronger multisig controls. Additionally, it is taking necessary steps to freeze the stolen assets in collaboration with the web3 security firm zeroShadow.
Impact on the Cryptocurrency Market
At the time of writing, Radiant’s native token, RDNT, trades at $0.061. Ranked 581st by market capitalization, RDNT has lost 2% in the last 24 hours and 13% over the past week.
“The compromised devices did not show obvious warnings except for minor errors and error messages during the signing process – these are common issues faced when interacting with hardware wallets and Safe. These seemingly routine error messages could indicate a deeper issue but would not typically raise immediate concerns.” – Radiant Capital
Radiant Capital describes the attack as highly sophisticated and expresses concern over such incidents. The platform is striving to prevent similar attacks in the future by strengthening its security protocols.
The cryptocurrency community is worried that such attacks could undermine trust in DeFi platforms. While Radiant Capital’s prompt response and cooperation with authorities are significant steps to manage the situation, the frequent risks of such attacks on DeFi protocols remain a stark reminder of vulnerabilities.
Security in the cryptocurrency ecosystem is crucial for the sustainability of platforms. Attacks like those faced by Radiant Capital provide important lessons for the entire sector. Continual updates to security protocols and raising user awareness will play a vital role in preventing future attacks.
