Radiant Capital Hack: Nearly $52 Million Stolen Funds Moved to Ethereum

In a recent turn of events, the hacker behind the Radiant Capital exploit has transferred almost all stolen funds from layer-2 protocols to the Ethereum network, potentially to obscure their tracks.

Details of the Hack

On October 24, blockchain security firm PeckShield reported that addresses linked to the Radiant Capital hacker have bridged approximately 20,500 Ether (ETH), valued at around $52 million, from the Arbitrum and Binance BNB Chain networks to Ethereum. This significant transfer raises concerns about the hacker’s next moves and the safety of the stolen assets.

On October 23, Radiant Capital urged users to secure their wallets by revoking approvals for affected smart contracts, warning that failing to do so could put their funds at risk of further drainage.

Radiant Capital, a decentralized finance (DeFi) platform enabling users to earn interest and borrow assets across various blockchain networks, was exploited for over $50 million on October 16. Unlike typical smart contract hacks, this breach involved a more sophisticated approach. A post-mortem released by the team on October 18 revealed that the attackers had compromised the devices of at least three core developers through “sophisticated malware injection,” which allowed them to gain control of the multisignature wallet.

Following the incident, Radiant Capital suspended its lending markets. The platform’s total value locked has plummeted by 66%, now sitting at around $24 million, according to DefiLlama.

A History of Vulnerability

This incident is not Radiant Capital’s first brush with security issues. Earlier this year, in January, the platform halted lending markets after experiencing a $4.5 million flash loan exploit. The trend of hackers using Ethereum as a means to launder stolen funds continues, often employing mixers like Tornado Cash to obfuscate their gains.

PeckShield noted that quickly swapping to Ether is a common tactic for hackers, allowing them to secure their funds before any preventive actions can be initiated by authorities or token issuers. This tactic has been observed in several other notable crypto hacks this year, including those affecting WazirX, CoinStats, Orbit Chain, Pancake Bunny, Unizen, and Penpie.

PeckShield also reported that cumulative losses from crypto hacks exceeded $120 million in September, marking it as the second-lowest monthly loss in 2024. As the DeFi landscape continues to evolve, the need for robust security measures becomes ever more critical for protecting user assets and maintaining trust in the ecosystem.