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The hacker behind the recent exploit of decentralized finance (DeFi) protocol Radiant Capital has shifted nearly all of the stolen funds from layer-2 networks to Ethereum.
According to blockchain security firm PeckShield, around 20,500 Ether, valued at approximately $52 million, was moved from Arbitrum and the Binance BNB Chain to Ethereum on October 24. This move suggests the hacker may attempt to obfuscate the stolen funds, as similar strategies have been employed in previous DeFi exploits.
Cross-chain DeFi lending platform Radiant Capital experienced the breach on October 16, when over $50 million was stolen. Following the attack, the platform urged its users to revoke approvals to affected smart contracts to safeguard their funds. It also warned that failure to do so could result in additional losses. The platformās total value locked (TVL) has since dropped by 66%. It now stands at around $24 million, according to data from DefiLlama.
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Malware Injection Leads to Exploit
What sets this incident apart is the method used by the attackers. In a post-mortem report published on October 18, Radiant Capital revealed that the exploit wasnāt a typical smart contract vulnerability. Instead, the attackers compromised the devices of at least three of Radiantās core developers through a sophisticated malware injection. This allowed them to gain control over the platformās multisignature wallet, effectively giving them access to the funds.
This is the second major exploit Radiant Capital has suffered this year. Back in January, the platform was hit by a $4.5 million flash loan attack, leading to a temporary halt in its lending markets. The recurring nature of these exploits has raised concerns within the DeFi community about the security measures being employed by cross-chain platforms like Radiant Capital.
Use of Ethereum in Obfuscating Stolen Funds
Ethereum is often a favored network for hackers seeking to obscure stolen funds, utilizing mixers like Tornado Cash to hide the origins of the money. In this case, the Radiant Capital hackerās movement of funds to Ethereum could signal an impending attempt to launder the funds through such services. This tactic has been employed in numerous hacks this year, including incidents involving WazirX, CoinStats, and Unizen, among others.
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PeckShield has emphasized that hackers frequently swap stolen tokens for Ether quickly to prevent any intervention from authorities or centralized token issuers. As of September 2024, cumulative losses from crypto hacks have surpassed $120 million.
