Radiant Capital to shut down after $50 million hack

Radiant Capital, a crypto lending protocol, has announced it will gradually wind down operations after losing $50 million in an attack linked to North Korea in October 2024. The platform stated it no longer sees a sustainable path forward and has entered the closure process.

No recovery after the attack

Radiant’s decentralized autonomous organization (DAO) published a blog post on Monday declaring the decision to shut down. The DAO cited the inability to recover stolen assets, failure to secure new capital, and a lack of financial flexibility to operate responsibly as key reasons for liquidation.

Despite increasing challenges, Radiant’s team noted that ongoing contributions from community members helped keep the system afloat, but without recovery, new capital, or growth, these efforts were ultimately not enough to ensure sustainability.

Radiant Capital launched in 2022 with the goal of aggregating liquidity from multiple blockchains on a single platform. The protocol experienced rapid growth throughout 2023, with total value locked (TVL) soaring to $386.8 million by December. This surge happened even as TVL figures elsewhere in the crypto market were declining.

Glossary: The Lazarus Group is a cybercriminal syndicate reportedly linked to North Korea, well-known in international security circles. In recent years, they have gained notoriety for high-profile attacks targeting crypto platforms and are frequently mentioned in blockchain security reports.

Protocol will not be fully decommissioned

Radiant clarified that the system will not be fully shut down but will instead enter a maintenance mode. The user interface will remain online, access to smart contracts will continue, and users can withdraw assets, repay loans, and manage current positions.

However, the DAO will cease to provide development, updates, or expansion. Protocol managers advised users to monitor risks closely and manage open positions with caution.

Sharp drop in TVL and token price

Following the October 2024 hack by the Lazarus Group, Radiant’s total value locked rapidly fell to $75 million, and within the same month, plunged further to $5 million. After these losses, the protocol was unable to regain former levels.

The company stated that recovery efforts launched after the attack will continue. The recovery portal will remain open and any reclaimed funds will be distributed to affected users.

Radiant Capital’s native token, RDNT, dropped in value by 4.2% following the closure announcement. RDNT had reached an all-time high of $0.58 in September 2022, but now trades at only a small fraction of that price.