Radiant Capital Shuts Down After Failing to Recover From US$50M Hack
- Radiant Capital is winding down after failing to recover funds or secure new financing following a major 2024 exploit.
- The protocol suffered two significant security incidents in 2024, including a US$50 million (AU$70 million) attack affecting its Arbitrum and BNB Chain deployments.
- While development is ending, user withdrawals, loan repayments and recovery efforts will continue through a reduced maintenance operation.
Cross-chain lending protocol Radiant Capital is shutting down active operations after determining that a recovery from its 2024 security incidents is no longer achievable with its remaining resources. The DAO said development work will stop immediately as it begins a gradual wind-down process.
The move comes roughly 18 months after a major exploit struck the protocol in October 2024. Radiant said it has not recovered any meaningful portion of the stolen funds, secured new investment, or obtained grants capable of restoring a sustainable operating runway.
In a statement explaining the decision, the DAO said contributors had continued working to support users, maintain the platform and pursue recovery efforts. However, it concluded that operational continuity alone was insufficient without growth, capital or successful fund recovery.
The October 2024 attack caused losses of approximately US$50 million (AU$70 million) across Radiant’s Arbitrum and BNB Chain deployments. According to reports at the time, attackers gained unauthorised access through a backdoor contract, resulting in losses estimated at US$51 million (AU$71.4 million).
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Funding Shortfall Adds To Pressure
The exploit was the second major setback suffered by the protocol during 2024. Earlier that year, a flash loan attack drained around 1,900 ETH from the platform, prompting the DAO to use treasury funds to cover communal bad debt and significantly reducing available reserves.
Although active development is ending, Radiant said its smart contracts will remain accessible on-chain and users will retain control of their assets and positions. Support channels, documentation and recovery infrastructure will also remain available, albeit with reduced operational capacity.
The DAO said remaining resources will be directed towards recovery-related activities, including forensic tracking, claims infrastructure and continued engagement with zeroShadow.
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The post Radiant Capital Shuts Down After Failing to Recover From US$50M Hack appeared first on Crypto News Australia.
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