Radiant Capital Restores Ethereum Lending After Security Upgrades
Radiant Capital has resumed its Ethereum lending after a hack that resulted in the loss of $58 million in digital assets. On November 1, the company announced several security upgrades, including transferring ownership to a time-lock contract that requires a 72-hour waiting period for modifications, strengthening security.
Emergency Management and Safer Multi-Signature Wallets
Radiant Capital also introduced an emergency manager role with the ability to suspend or resume markets as needed. Additionally, the decentralized autonomous organization (DAO) updated the security of multi-signature wallets, now requiring four out of seven signatures to approve transactions. This setup enhances security by eliminating single-point-of-failure risks.
Costly Lesson for DeFi Following Loss of Millions
These upgrades followed an attack that led to the loss of $58 million in digital assets. Radiant Capital temporarily suspended its lending on October 16 after a cyber attack on the BNB and arbitration chain. Hackers gained access to private keys and smart contracts of several key signatories, draining over $50 million.
Attackers Exploited Developers' Devices Using Malware
On October 18, Radiant Capital confirmed that the devices of three main developers had been compromised by malware, which manipulated transactions. The front-end of the wallets displayed legitimate transactions while malicious transactions were executed in the background.
“A $50 Million Lesson” for the DeFi World
Security expert Patrick Collins called the incident a “$50 million lesson” for the world of decentralized finance (DeFi). According to Collins, there is a need for better education on secure transaction verification, especially with hardware wallets.
Hackers Have Already Moved Most of the Stolen Funds
Radiant Capital lost nearly $52 million, which attackers have already moved from the blockchain, as reported by security firm PeckShield on October 24. Phishing attacks have led to significant losses, as seen in the August 21 case where attackers gained access to $55 million in stablecoins.
Need for Better Transaction Security in the Crypto Space
Due to such incidents, Ledger CEO Pascal Gauthier highlighted the need for clear transaction signing. He emphasized that the industry should focus on safer and more transparent transaction verification.
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