- The recently launched native USDC market on Arbitrum has been the subject of concern.
- Just six seconds after the new USDC market was activated, the perpetrator stole the funds.
In yet another significant exploit, Radiant Capital, a cross-chain lending system, had 1,900 Ethereum (ETH) stolen worth $4.5 million.
PeckShield, a blockchain security and analytics company, reported about the incident first. A recent hacking event on RDNT Capital led to the loss of 1.9k ETH, or over $4.5 million, according to PeckShield.
Lending and Borrowing Suspended
Moreover, this assault took use of a vulnerability in a lending platform that had been enabled after the activation of a new market. The platform was forked from popular platforms, Compound/Ave.
The current Compound/Aave codebase has a known rounding flaw, which the hacker also took use of. Also, just six seconds after the new USDC market was activated, the perpetrator of the event used the exploit.
One easy way to stop these kinds of exploitation, according to PeckShield, is to activate new markets with a CF (Collateral Factor) of 0%.
The recently launched native USDC market on Arbitrum has been the subject of concern by Radiant Capital. The Radiant DAO Council has decided to temporarily suspend the lending and borrowing markets on Arbitrum in order to carry out a comprehensive inquiry, after validation by Radiant developers and the larger Web 3 security community. At this time, there are no existing funds that might be jeopardized.
Radiant said that no other steps can be done until Arbitrum’s markets are back up. After the inquiry is over, ordinary protocol activities on Arbitrum will go back to normal, and a detailed aftermath will be released. Security failures in the cryptocurrency industry persist far into the year 2024.
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