Radiant Capital, behind the cross-chain lending protocol and altcoin RDNT, has paused its lending and lending markets on Arbitrum after receiving reports of a $4.5 million exploit affecting one of the newly created USDC Coin (USDC) markets.
Radiant Capital receives report on altcoin USDC
“Today, we received a report of an issue with the newly created native USDC market on Arbitrum,” Radiant said in a Jan. 3 post on X (formerly Twitter), adding that the post was later verified by Radiant developers and the broader cybersecurity community. Blockchain security firm Beosin described the exploit as a flash credit attack; The attacker exploited a “rounding issue” in the codebase, “causing a cumulative precision error.” This ultimately “allows the attacker to make profits through repeated deposits and withdrawals,” a Jan. 3 post on X said.
An earlier post from PeckShield, dated January 2, also identified the issue as arising from a “known rounding issue” in the existing Compound/Aave codebase. “The main reason for this is not new: It basically takes advantage of the time window in which a new market is activated in a lending market (forked from the popular Compound/Aave),” he added. The exploiter Arbitrum managed to withdraw a total of $4.5 million worth of Ether from the protocol, according to data from block explorer Arbiscanner.
Transactions are paused
Radiant has since paused its lending and borrowing markets on Arbitrum and reassured investors that no additional funds are currently at risk. He promised a thorough autopsy and a return to normal operations once the investigation is complete. “As a reminder, no transactions can be made until the markets on Arbitrum are unpaused,” Radiant added. Meanwhile, the cryptocurrency community is already flooded with fake Radiant Capital accounts posting phishing links that purport to help users revoke approvals.
cryptokoin.com As we reported, Radiant Capital is a decentralized borrowing and lending protocol with cross-chain functionality built using LayerZero technology. According to DefiLlama, the total value of the protocol is currently around $315 million. Despite the hack in question, the RNDT price has increased by 2 percent. The cryptocurrency is currently changing hands at $0.331. It dropped to $0.0308 during the day. Time will tell whether it will be affected by the hack news in the coming period.
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