Radiant Capital hacker moves $52M in stolen funds

As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies and blockchain security, I find myself increasingly disheartened by the relentless string of hacks and exploits plaguing DeFi platforms like Radiant Capital. The recent theft from Radiant is a stark reminder of the vulnerabilities that persist within this industry, and the sophisticated tactics employed by these cybercriminals to obfuscate their ill-gotten gains.


The individual responsible for the recent heist at Radiant Capital’s decentralized finance platform may have transferred most of the stolen assets from layer-2 networks to Ethereum, potentially as a means to make the funds harder to trace in the future.

On October 24, it was reported by blockchain security firm PeckShield that the addresses associated with the Radiant Capital exploiter have transferred most of the unlawfully acquired cryptocurrency from the exploit on layer-2 network Arbitrum and Binance BNB Chain to the Ethereum network.

Approximately 20,500 Ethers, equivalent to around $52 million, were transferred, as observed.

On October 23rd, Radiant Capital advised its users to strengthen their wallet security by canceling any approvals linked to impacted smart contracts.

“Failing to do so puts your funds at risk of being drained,” it warned. 

On October 16, a cybersecurity incident resulted in an exploit that led to the temporary halt of operations in the cross-chain decentralized finance (DeFi) lending platform, causing losses exceeding $50 million.

Radiant Capital hacker moves $52M in stolen funds

Instead, this exploit wasn’t typical for smart contracts. On October 18, a post-mortem report was published, detailing that the attackers infiltrated at least three core developers’ devices at Radiant by using advanced malware, allowing them to manipulate the multisignature wallet. In simpler terms, they gained unauthorized control over the multisignature wallet by infecting certain developers’ computers with complex malware.

Radiant Capital serves as a Decentralized Finance (DeFi) hub where users can generate returns on their investments and secure loans using various blockchain systems including Ethereum, BNB Smart Chain, and Arbitrum. Since the incident of exploitation, the platform’s total value locked has declined by 66%, now standing at approximately $24 million as per DefiLlama’s recent data.

This year, Radiant Capital has encountered security issues more than once. Back in January, they temporarily stopped their lending markets due to a $4.5 million flash loan attack.

Criminals who hack systems and commit cybercrimes frequently employ Ethereum as an intermediary to obscure their illegally obtained funds using services like Tornado Cash, which function as digital money laundries.

In many instances of cryptocurrency hacks and exploits this year, including those at WazirX, CoinStats, Orbit Chain, Pancake Bunny, Unizen, and Penpie, a consistent approach has been employed as the main tactic.

In my recent conversation with CryptoMoon, I shared insights from PeckShield regarding a swift transfer of funds to Ether. This action could potentially allow a hacker to safeguard their ill-gotten gains prior to any actions taken by authorities or the issuers of centralized tokens to prevent further losses or recover stolen assets.

As an analyst, I’ve observed that according to PeckShield’s report, the collective losses due to cryptocurrency hacks in September of this year amounted to over $120 million. Surprisingly, it appears that this figure represents the second-lowest monthly loss we’ve seen in the year 2024.

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2024-10-24 08:45