Ethereum News Today: Ether's 103% surge turns Radiant Capital exploit into $103M windfall

The recent surge in Ether (ETH) prices has transformed a $58 million exploit at decentralized finance (DeFi) platform Radiant Capital into a $103 million windfall for the hacker. The exploit occurred in mid-October 2024, when a security breach on BNB Chain and Arbitrum allowed the attacker to siphon funds. The stolen assets were later converted into ETH, and as of early 2025, the hacker holds approximately 21,957 ETH, valued at around $103 million—nearly double the initial stolen amount. This increase in value is attributed to Ether’s price appreciation, which saw the token close above $4,700, up from $2,300 in October 2024 [1][2][3].

The incident underscores the volatility and risk associated with DeFi protocols, which, despite offering high yields and decentralized access to financial services, remain vulnerable to sophisticated attacks. Radiant Capital, a cross-chain lending platform, has not disclosed whether any of the stolen funds have been recovered or if legal action is being pursued. The absence of a public response highlights the broader challenges DeFi platforms face in securing user assets while maintaining operational efficiency [1][2][3].

Analysts suggest that the hacker’s decision to convert stolen assets into ETH was likely driven by operational security and liquidity rather than intentional market timing. The blockchain forensics team at AMLBot noted that attackers often convert stolen tokens into major cryptocurrencies like ETH or Bitcoin (BTC) to evade detection and facilitate easier movement across ecosystems. With ETH’s high liquidity and broad market infrastructure, it is a preferred asset for such conversions [1][2].

The broader Ether price rally is attributed to several factors, including the launch of U.S. spot Ether ETFs in late July 2024. These ETFs have seen a total net inflow of $12.12 billion, contributing to increased demand and reduced circulating supply. Additionally, a growing portion of Ether is being staked, with over 36 million ETH currently staked as of early 2025. Corporate treasuries also hold significant amounts of Ether, with some reports indicating holdings exceeding $100 billion. Regulatory developments, such as the U.S. Securities and Exchange Commission (SEC) dropping its probe into whether ETH qualifies as a security, have further contributed to a more favorable market sentiment [1][2][3].

Ethereum’s ecosystem has also seen significant growth in 2024. The Dencun upgrade, which introduced EIP-4844 and improved network scalability, was a key catalyst. Layer-2 transaction volumes have surged, with daily counts reaching as high as 13.88 million in early 2025. This growth demonstrates Ethereum’s evolving infrastructure and its ability to handle increased transaction throughput while maintaining security and efficiency [1][2][3].

Despite these positive developments, the Radiant Capital exploit serves as a cautionary tale for DeFi participants. While the crypto market offers opportunities for rapid appreciation, it also exposes vulnerabilities that can be exploited by malicious actors. As Ether continues to climb and institutional adoption grows, platforms must prioritize robust security measures to protect user assets and maintain trust in the ecosystem [1][2][3].

Source:

[1] "The $53M Hacked Away From Radiant Capital Become $102.5M With Ether Rising", Cointelegraph, https://cointelegraph.com/news/the-53m-hacked-away-from-radiant-capital-become-102-5m-with-ether-rising

[2] "Ether Rally Turns Radiant Capital Exploit Into $103M Windfall For Hacker", advfn.com, https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96636061/ether-rally-turns-radiant-capital-exploit-into-10

[3] "Ethereum News Today & ETH Predictions", Cointelegraph, https://cointelegraph.com/tags/ethereum