The Radiant Capital hack sees $52M in stolen crypto moved to Ethereum, raising concerns about fund recovery as the hacker looks to obfuscate their loot.
In a sophisticated attack on Radiant Capital, a decentralized finance (DeFi) protocol, a hacker managed to steal over $50 million. Recently, the hacker transferred the stolen funds, amounting to nearly 20,500 Ether, from layer-2 networks like Arbitrum and Binance Smart Chain to Ethereum. This movement often precedes attempts to obscure the funds' trail, making recovery more challenging for authorities and victims.
Key Points:
Stolen Funds Moved to Ethereum:
The hacker responsible for the Radiant Capital attack transferred approximately 20,500 Ether, worth around $52 million, from layer-2 networks like Arbitrum and Binance Smart Chain to the Ethereum network. This is a common tactic used by cybercriminals, as Ethereum offers access to privacy-focused tools like mixers, which obscure the source and flow of funds, making it harder for authorities to track and recover the stolen crypto. These tools, such as Tornado Cash, are used to hide the trail of illicitly acquired assets.
Radiant Capital Urges Users to Revoke Approvals:
After the exploit, Radiant Capital issued an urgent warning to its users, encouraging them to revoke any smart contract approvals that may have put their funds at risk. By revoking these approvals, users can prevent unauthorized access to their wallets, reducing the likelihood of further losses. In a decentralized finance (DeFi) ecosystem, smart contract approvals often grant certain permissions to external platforms or contracts, so revoking them can be a critical step after a security breach.
Sophisticated Attack Targeted Core Developers:
The hack was not a typical smart contract exploit. It involved a targeted attack on the personal devices of at least three core developers at Radiant Capital. Through a sophisticated malware injection, the hacker gained control over the project's multi-signature wallet, enabling the theft of the funds. This type of attack is more dangerous as it directly targets the individuals in charge, rather than exploiting vulnerabilities within the smart contract itself.
Not Radiant Capital's First Hack:
Earlier this year, Radiant Capital suffered another breach. In January 2024, the platform was hit by a $4.5 million flash loan exploit, which led to a temporary halt in lending markets. The recurring security issues highlight the broader vulnerabilities that can plague DeFi platforms, where complex smart contract interactions and cross-chain functionalities can open doors for attackers.
Ethereum as a Gateway for Mixers:
Hackers often move stolen assets to Ethereum to take advantage of mixing services like Tornado Cash. These services "mix" the funds from various users, making it difficult to trace the origin of the funds. This method has become a go-to for cybercriminals, as it provides a layer of anonymity and helps them avoid detection while laundering stolen cryptocurrencies. It is a well-established tactic used in previous high-profile crypto hacks, including incidents involving exchanges and DeFi protocols.
The movement of stolen funds from Radiant Capital to Ethereum is troubling for victims hoping for recovery. With Ethereum serving as a gateway for mixers, the chance of recovering these funds diminishes as hackers attempt to cover their tracks.
Source: Coinpedia
Comentarios