Radiant Capital has enlisted the help of the FBI and U.S. security agencies in their efforts to recover $50 million that was stolen during a sophisticated cyberattack on October 16, 2024. This attack utilized advanced malware tactics aimed at compromising developers’ hardware wallets, which led to unauthorized transactions.
What Techniques Were Used in the Cyberattack?
Investigations reveal that hackers executed a complex software injection targeting three developers’ wallets. This approach manipulated transaction validations, allowing the attackers to conduct malicious operations unnoticed. Radiant Capital’s internal security team and external audits failed to detect these vulnerabilities in their normally secure multi-signature system, resulting in the loss of significant funds.
How is Radiant Capital Responding?
In the wake of the breach, Radiant Capital has intensified its partnership with the FBI and cybersecurity experts to trace the misappropriated assets. Some stolen funds have been frozen as a result of tracking efforts. The firm is also reassessing and enhancing its security measures, including stricter validation processes for digital signatures.
Key actions taken by Radiant Capital include:
- Collaborating with the FBI to trace and recover funds.
- Freezing some stolen assets through digital footprint tracking.
- Implementing stricter signature validation protocols.
- Reducing the number of required signers for transactions from ten to seven.
- Updating cold wallets with new security devices.
Additionally, transaction data is now being cross-verified via Etherscan to prevent discrepancies. Radiant Capital is optimistic about resuming activities in the Base and Ethereum markets soon. As the cryptocurrency landscape faces increasing cyber threats, this incident underscores the urgency for heightened security measures across the industry.