Radiant Capital has partnered with the FBI and security firms to recover its lost $50 million funds.
Cross-chain lending protocol Radiant Capital has allied with the Federal Bureau of Investigation (FBI) after it suffered an attack that led to the loss of more than $50 million in crypto assets. The funds were siphoned from both BNB Chain and Arbitrum. Besides the US FBI, Radiant Capital is in contact with a few security firms to recover its assets.
So far, SEAL911, Hypernative, ZeroShadow, and Chainalysis are on board to investigate the incident and implement recovery measures. Unfortunately, the severity of the attack caused Radiant Capital to shut its lending market on the Base Network temporarily.
Radiant Capital’s Hacker Exploit Vulnerability
Web3 security firm De.Fi Antivirus noted that the attacker leveraged Radiant Capital’s ‘transferFrom’ function to perpetrate the act. This function allowed the bad actor to initiate unauthorized withdrawals from targeted multiple developers’ hardware wallets. Eventually, he siphoned various cryptocurrencies, including USDC, WBNB, and ETH. The attacker allegedly accessed several signers’ private keys.
Once in control, he took over several smart contracts. The attack went on for a while before it was discovered. According to Pop Punk, the pseudonymous co-founder of token launch platform g8keep, the attack is like a “school bully stealing lunch money.” He provided this illustration to emphasize the severity of the security vulnerability.
While cybersecurity firm Ancilia Inc. quoted the losses at a figure closer to $50 million, De.Fi pegged it at around $58 million.
Unfortunately, this breach reflects the increasing concerns about the vulnerability of multi-signature wallet systems in blockchain protocols.
Additionally, Radiant Capital’s Decentralized Autonomous Organization (DAO) has overhauled its security protocols and multi-signature verification processes to prevent recurrence. The developer team has also implemented more stringent multi-layer signature verifications and introduced independent devices to confirm transaction data before approval.
To reinforce security, contributors have introduced new cold wallet addresses using fresh, uncompromised devices to eliminate vulnerabilities. Even Admin and DAO multi-sigs were boosted by reducing the number of signers to seven and raising the signing threshold to four. Generally, Radiant Capital is deploying a new suite of contracts for the affected markets.
They will operate under enhanced security systems. These changes are expected to fortify the infrastructure against these types of exploits in the future.
FBI Step up Fight Against Crypto Attack
Law enforcement agencies are gradually stepping up to address cases of hacks, attacks, and breaches in the crypto landscape. At the same time, these bad actors are devising more strategies to carry out their attacks.
Two weeks ago, the FBI issued a strong public warning about the ICHCoin crypto scam, which drained Americans of their life savings. Victims were lured with a quick course on crypto investing, but ICHCoin had the ultimate goal of stealing millions from people nationwide. From December 2023 until the FBI caught wind of their activity, the fraudsters had stolen around $30 million through the ICHCoin app.
Similarly, the FBI recently joined hands with the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) to indict a few fraudulent crypto firms. Quant Investment, Gotbit Consulting, and CLS Global were caught in the enforcement action.
The FBI encourages crypto users to stay vigilant and avoid clicking on suspicious links and emails. In the case of any attack, individuals are advised to fill out the FBI’s online questionnaire to aid in the investigation and help prevent further losses.
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