Crypto Lender Radiant Capital to Wind Down After $50M North Korean Hack
L'essentiel
- Crypto lending protocol Radiant Capital is winding down operations after a $50 million exploit by North Korea's Lazarus Group in October 2024.
- The protocol will enter a "maintenance state" but will cease development and upgrades.
Résumé généré par IA
Pourquoi c'est important
Radiant Capital, a crypto lending protocol launched in 2022, aimed to provide liquidity across multiple blockchains. It experienced significant growth in 2023, with its total value locked reaching over $386 million. However, a major exploit by North Korea's Lazarus Group in October 2024 led to substantial fund losses and a sharp decline in its total value locked.
Crypto lending protocol Radiant Capital says it will start closing down as it failed to establish a “viable path forward” after North Korea exploited it for $50 million in October 2024.
Radiant’s decentralized autonomous organization said in a blog post on Monday that its inability to recover the stolen funds, secure new capital and maintain a runway to continue operating responsibly forced it to wind down.
It added on X that contributors and community members had helped maintain the protocol under “increasingly difficult conditions,” but it was not enough to sustain the protocol “without recovery, capital, or growth.”
Source: Radiant Capital
Radiant launched in 2022 and aimed to be a single platform to bring liquidity to several blockchains. It rapidly expanded in 2023, with its total value locked soaring to a high of $386.8 million in December 2023 even as value locked across the crypto market fell.
North Korea’s Lazarus Group exploited Radiant in October 2024, and its TVL fell to $75 million before collapsing further to $5 million within the month after the hack, which it never recovered from.
Radiant not fully shutting down
Radiant said that instead of fully shutting down, it will transition into a “maintenance state,” where the protocol’s frontend will stay online, its smart contracts will remain accessible and users will be able to withdraw, repay, and manage their positions.
However, its decentralized autonomous organization will no longer contribute to development, upgrades or expansions.
Related: DxSale drained for $7.3M in BNB Chain liquidity exploit
“Users are encouraged to actively manage risk and reduce exposure,” it said.
Source: Radiant Capital
Radiant said it would continue recovery efforts stemming from the hack by keeping its remediation portal open and returning any recovered funds to affected users.
The Radiant Capital (RDNT) token fell 4.2% after sharing that it was winding down. The token hit an all-time high of 58 cents in September 2022, but is now trading for a fraction of a cent.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Radiant Capital will eventually fully cease operations, even in its maintenance state.
Probable · En quelques mois
Further investigation into the Lazarus Group's activities and their impact on the crypto market.
Très probable · En quelques semaines
Questions ouvertes
- Will any of the stolen funds be recovered?
- What specific measures will be taken during the 'maintenance state'?
- Are there any other entities or protocols at risk due to this situation?
- What is the long-term outlook for the RDNT token?
