DeFi lender Radiant Capital appears to have been exploited on Binance Smart Chain following newly implemented upgrades.

Radiant Capital, a decentralized finance project built on LayerZero, suffered losses of up to $18 million due to an attack by unidentified individuals. Real-time web3 security startup Ancilia first reported the compromise, indicating that the issue likely stemmed from a backdoor contract deployed on the BSC network.

According to Ancilia, hackers initiated suspicious transactions from user accounts, suggesting that additional Radiant customer funds might be at risk. An Ancilia update revealed that the compromise extended to the Arbitrum chain, raising the total losses to $50 million.

Radiant Capital had not yet commented on the situation, and requests for insight sent by crypto.news went unanswered at press time. In the meantime, users were advised to revoke malicious approvals and avoid trading on Radiant Capital via Binance Smart Chain.

The hack comprised over 10% of crypto losses spotted by PeckShield last month. In September, criminals stole more than $120 million from DeFi protocols.

Exploiters siphoned $40 million from a single platform called BingX. The crypto exchange has since resumed normal operations and is working to resolve the issues. Other services impacted by attacks include Ethena Labs, Decentraland, Penpie, and Indodax.

Authorities have become increasingly vigilant toward crypto crimes, opening lawsuits and issuing crackdowns on offenders. A U.S. hacker named Evan Frederick Light could serve a 20-year prison sentence for a $37 million crypto theft.

Gotbit’s multi-million dollar charges may spark FUD, but fear-driven sell-offs could trigger a swift recovery, Santiment predicts.

The recent criminal charges against Aleksei Andriunin, CEO of market-making firm Gotbit, for a $42 million crypto market manipulation scheme have sent shockwaves through the industry, though analysts suggest the eventual outcome might actually be positive for the space.

As crypto.news reported earlier, Andriunin and Gotbit face charges for inflating crypto trading volumes through “wash trading,” creating the illusion of active markets before dumping assets at inflated prices. Despite the short-term panic, blockchain analytics Santiment points to historical trends indicating that such fear-driven sell-offs often create buying opportunities for more experienced traders.

Brian Quinlivan, director of marketing at Santiment, highlighted in a recent blog post that “markets tend to move in the opposite direction of the crowd’s expectations, especially when fear-driven retail activity dominates the headlines.”

“While the immediate reaction might be a small dip, as news of the manipulation scheme spreads, there’s a strong likelihood that the market could absorb the panic and swiftly reverse direction.”

Brian Quinlivan

He noted that panic selling may lead to a capitulation effect, where the worst-case scenario is already priced in, setting the stage for a potential bullish reversal, creating opportunities for institutional investors and market participants.

Santiment warns that the broader crypto market could face short-term disruptions “especially those directly connected to the manipulation, like Robo Inu and Saitama.” However, Quinlivan emphasized that “moments of extreme FUD often coincide with market bottoms,” and the removal of Gotbit’s market manipulation practices could lead to a “healthier, more transparent trading environment, increasing confidence in cryptocurrency markets.”

Gotbit, which has been active since 2017, was co-founded by Andryunin and Iuliia Milianovich. Per the firm’s description, its platform-based solution was aimed at giving project founders more control over their markets. In July 2019, Andryunin publicly acknowledged that the firm’s business “is not entirely ethical” and expressed intentions to wind down its market-making operations due to challenges with strict customer identification processes.

The firm’s website listed several prominent crypto exchanges and venture firms, including Binance, OKX, Crypto.com, a16z, Gate.io, and Bybit, in its “our friends” section. However, it remains unclear if these entities have any formal connections to Gotbit.

Coinbase is raising awareness about the rise of online scams targeting younger users, particularly Gen Z. 

In a blog post published on Oct. 8, Coinbase outlined four online threats Gen Z should be aware of, including social media fraud, romance scams, fake websites, and recovery schemes.

Coinbase emphasized that crypto users must take personal responsibility for securing their assets. Unlike traditional banking, where institutions provide a level of security, crypto owners control their assets directly, making them both their own safeguard and biggest security risk.

Social media scams

One of the major scams Coinbase warned about involves social media platforms like Instagram and TikTok, where fraudsters create fake profiles or impersonate well-known figures. 

Scammers often introduce seemingly legitimate investment opportunities to unsuspecting users, but these offers are rarely genuine. Coinbase advises users to be cautious of unsolicited messages from strangers promoting crypto investments.

A recent example of this scam took place in Vietnam, where five suspects involved in a crypto fraud network used social media to build fake romantic relationships and lure victims into investing in a fraudulent platform. 

The scammers defrauded victims of over 17.6 billion Vietnamese dong ($700,000) through their scheme.

Romance scams and fake websites

Another growing threat Coinbase mentioned is romance scams, often called pig butchering scams. 

Romance scams involve fraudsters befriending victims under the pretense of a potential love interest. These scammers pretend to form personal connections to gain victims’ trust and then exploit them financially. These schemes often occur on dating apps or social media platforms.

Scammers also use fake websites to trick victims into providing personal information or sending funds. Many of these sites mimic legitimate companies but have minor differences in their URLs.

Similarly, on Oct. 3, a U.S. citizen filed a lawsuit after losing $2.1 million in Bitcoin (BTC) due to a pig butchering scam involving fake crypto exchange websites. Just as Coinbase warned, the scammers operating from Southeast Asia used these fraudulent sites to simulate trading and steal funds from the victim. 

Boosting awareness and reporting scams

In 2023, over 67,000 online scams were reported, per Coinbase, with the median loss reaching $3,800. 

Coinbase stressed that raising awareness and reporting suspicious activity can help prevent others from falling victim to similar scams. The company encourages users to report scams to law enforcement and platforms like Coinbase to aid in the fight against cybercrime.

With crypto ownership comes responsibility, and Coinbase’s message to Gen Z is clear: Stay vigilant, know the risks, and help protect the community from fraud.