30s Summary

Radiant Capital has returned to the Ethereum lending market after losing nearly $58m in assets in a previous hack. The firm has restructured its security measures, including a delay in asset access of 72 hours, the creation of an emergency admin role and a reduction in the number of people required to authorise a transaction. The company’s changes came after a significant security breach in October forced them to halt operations briefly.

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Radiant Capital is back in the Ethereum lending scene after they lost almost $58 million in digital assets due to a hack. On November 1, they came up with a new plan to improve their structure. They shifted the ownership of assets into a contract that can only be accessed after a 72-hour waiting period. This move allows them to tighten their security measures.

They also created an emergency admin role. The person in this role can stop and start the lending market when needed. Also, they improved their security by altering the rules for their decentralized, autonomous organization (DAO). Now, they’ve reduced the number of people needed to sign off on a transaction to seven, with at least four of the seven signers needed to approve.

This particular feature, called multisignature wallets, promises better security because it demands multiple sign-offs for any crypto transactions. This way, the loss of a single private key won’t lead to a disaster.

The need to fortify their security boosted after they lost over $50 million worth of digital assets due to a security breach on October 16. This serious attack made Radiant Capital temporarily stop their lending operations.

The bad actors managed to control several important parts of the system, which let them draw assets worth over $50 million from the protocol. The security breach was such that key devices appeared to run normal transactions while the hack was in action unnoticed. The incident was described as a “$50 million lesson” for the DeFi space by a security professional.

The thief has already transferred about $52 million of the stolen money. As reported on October 24, almost all of the stolen money has been moved according to a blockchain security company PeckShield.

Crypto phishing attacks have previously resulted in huge losses. In such a scenario, a hardware wallet company has stressed on the need to educate users on signing.