Radiant Capital, a leading DeFi protocol, has suffered a major hacking attack, resulting in the theft of $50 million worth of cryptocurrency. The attack was one of the most complex in the history of DeFi.
The hackers exploited vulnerabilities in the three developers’ devices and applied complex and malicious code to mask hardware wallet transactions. During a standard multi-signature setup procedure, they hijacked key protocol components in the Arbitrum and Binance smart chain networks. Radiant Capital has reached out to US law enforcement and cyber security experts to freeze and investigate the stolen assets.
Radiant Capital is a popular DeFi protocol that supports multi-signature transactions. The attack presents a new challenge to decentralized financial security and highlights weaknesses in even the most rigorously-standardized protocols.
The incident demonstrates the need to strengthen security in the DeFi sector, including improving the transaction verification process, avoiding blind signatures, and automating transaction audits.