- Radiant Capital is shutting down active operations after a $50M hack and failed recovery efforts.
- The protocol will remain in maintenance mode, allowing users to withdraw funds and manage positions.
- Despite ongoing efforts, no stolen assets have been recovered and fresh funding could not be secured.
Radiant Capital will wind down its operations after failing to recover from a $50 million hack that hit the platform in October 2024. The decision follows 18 months of efforts to recover stolen funds, secure new financing, and keep the protocol running.
In a post on X, Radiant said it had not recovered any of the stolen assets and had failed to attract fresh capital. As a result, the protocol will end active development and move into a maintenance phase. Users will still be able to withdraw funds, repay loans, and manage existing positions.
Recovery Efforts Fall Short
Radiant was already under pressure before the October 2024 exploit. Earlier that year, the protocol suffered a flash loan attack that drained about 1,900 ETH. Following that incident, the DAO used treasury funds to cover community losses, which reduced its remaining reserves.
The situation worsened in October when the second exploit happened. The firm tried to recover funds with blockchain security firm ZeroShadow; however, none of the stolen funds have been recovered so far.
At the same time, Radiant has struggled to secure fresh investment or grants. As a result, the project has faced ongoing financial strain while trying to manage the aftermath of both incidents.
As funding remained limited, user activity declined and revenue fell. Those pressures left the protocol without a sustainable path forward.
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What Changes for Users
Radiant said the protocol will remain operational during an orderly wind-down rather than shutting down immediately. Users can continue to access the platform, withdraw funds, repay loans, and manage existing positions. The protocol’s smart contracts will also remain available on-chain.
At the same time, Radiant has stopped building new features and shut down borrowing across its markets. The protocol has also ended RDNT token rewards and restricted treasury spending to core functions such as assisting users and handling recovery efforts.
The DAO advised users to keep a close eye on their positions and lower their risk exposure if needed. It also made clear that no new features, upgrades, or major improvements are planned as the protocol shifts to a maintenance-only phase.
Community Concerns Remain
The wind-down announcement drew questions from users who lost funds in the October 2024 exploit. Responding to Radiant’s post on X, user Ivan Mocharnyk asked, “What about my $6,000 I lost in hack?”
Another community member, Gabriele Manfredi, criticized the remediation process and raised doubts about whether affected users would receive compensation. He also claimed that a smart contract deducted about $1,000 from his wallet during the process.
Radiant said recovery efforts will continue despite the wind-down. The protocol’s remediation portal will remain active, and any funds recovered in the future will be distributed to affected users. However, the DAO acknowledged that asset recovery remains uncertain and may take a long time.
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