According to PeckShield, a blockchain security company, the attackers exploited a known vulnerability that occurs when liquidity pools are launched. As a result, Radiant Capital has temporarily suspended lending operations in pools on Arbitrum and is currently conducting an investigation into the incident. Notably, the hack took place a mere 6 seconds after the launch of a new lending market involving the USDC stablecoin.
“The root cause of this hack is not new: attackers took advantage of the brief time window that occurs during the launch of a new lending market,” explained representatives from PeckShield.
Developers at Radiant Capital have confirmed that the incident was due to an issue with the recently launched USDC market on Arbitrum. A detailed report on the incident will be provided after the investigation. However, they have assured users that the funds in all other pools are secure, and normal operations will resume once the hack is thoroughly examined.
It’s worth noting that last year, a total of 116 cryptocurrency projects shut down, with some collapsing after falling victim to similar hacker attacks.