Radiant Capital has paused its lending markets following a cybersecurity breach resulting in losses exceeding $58 million across the BNB Chain and Arbitrum. Reports indicate that the breach involved the exploitation of the ‘transferFrom’ function, which was used to drain funds including $USDC, $WBNB, and $ETH. Radiant Capital acknowledged the issue and is collaborating with several cybersecurity firms to investigate. The incident reportedly stemmed from a compromise of a multisignature wallet, allowing attackers to control multiple private keys and access smart contracts. Experts highlighted that, despite being a common security measure, multisig setups pose vulnerabilities due to centralization risks, which undermines the foundational trust of blockchain technology. In the current climate, focusing on more decentralized and secure models is becoming increasingly necessary to protect user funds.

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