Radiant Capital is shutting down active operations after determining recovery from its October 2024 security incidents is no longer achievable with remaining resources. The cross-chain lending protocol suffered a US$50 million exploit in October 2024 affecting Arbitrum and BNB Chain deployments, and has not recovered stolen funds, secured new investment, or obtained grants capable of restoring sustainable operations. The DAO said development work will stop immediately as it begins a gradual wind-down process, with remaining resources directed toward recovery-related activities.
Radiant Capital Suffered US$50 Million October 2024 Exploit
The October 2024 attack caused losses of approximately US$50 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. The DAO said it has not recovered any meaningful portion of the stolen funds since the incident. In a statement explaining the shutdown decision, the DAO said contributors had continued working to support users, maintain the platform and pursue recovery efforts, but concluded that operational continuity alone was insufficient without growth, capital or successful fund recovery.
Earlier 2024 Flash Loan Attack Drained 1,900 ETH
The October 2024 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. The DAO used treasury funds to cover communal bad debt following the flash loan incident, significantly reducing available reserves. The combination of both 2024 security incidents and the resulting funding shortfall added pressure that led to the shutdown decision.
Protocol Transitions to Maintenance-Only Operations
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. User withdrawals, loan repayments and recovery efforts will continue through a reduced maintenance operation. 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.
FAQ
What happened to Radiant Capital in October 2024?
Radiant Capital suffered a US$50 million exploit in October 2024 affecting its Arbitrum and BNB Chain deployments. Attackers gained unauthorised access through a backdoor contract.
Why is Radiant Capital shutting down?
The protocol determined recovery is no longer achievable with remaining resources after failing to recover stolen funds, secure new investment, or obtain grants capable of restoring sustainable operations following two major 2024 security incidents.
Can users still access their funds on Radiant Capital?
Yes. Smart contracts remain accessible on-chain, users retain control of their assets and positions, and withdrawals and loan repayments will continue through reduced maintenance operations.
