Radiant Capital to Wind Down After 2024 Hack and TVL Collapse

Radiant Capital to Wind Down Operations – DeFi Lending Protocol Shifts to Maintenance Mode After 2024 Hack

Key Takeaways

• Radiant Capital will wind down operations after failing to recover from a $50 million exploit in October 2024.
• The protocol will transition to a maintenance state, keeping its frontend and smart contracts accessible to users.
• Users can still withdraw, repay, and manage positions, but no further development or upgrades will take place.
• Radiant’s total value locked fell from $386.8 million in December 2023 to $5 million following the hack.
• The RDNT token declined 4.2 percent after the wind down announcement and trades at a fraction of its 2022 peak.

Radiant to Close Down After Failing to Recover From $50 Million Exploit

Radiant Capital, a decentralized finance lending protocol launched in 2022, has announced that it will begin closing down after failing to establish what it described as a viable path forward following a major security breach in 2024.

According to a blog post from Radiant’s decentralized autonomous organization, the protocol was unable to recover the funds lost in an October 2024 exploit attributed to North Korea’s Lazarus Group. The attack resulted in losses of $50 million. The organization stated that the combination of unrecovered funds, the inability to secure new capital, and a lack of sustainable growth left it without sufficient runway to continue operating responsibly.

In a statement shared on X, Radiant said that contributors and community members had continued to support the protocol under increasingly difficult conditions. However, these efforts were not enough to sustain operations without recovery of the stolen assets, new funding, or renewed growth.

From Rapid Expansion to Sharp Decline in Total Value Locked

Radiant positioned itself as a cross chain liquidity protocol designed to bring lending and borrowing liquidity across multiple blockchains through a single platform. After launching in 2022, it expanded rapidly during 2023.

In December 2023, Radiant reached a peak total value locked of $386.8 million. This growth occurred even as overall value locked across the broader crypto market declined, indicating strong protocol specific inflows at that time.

The October 2024 exploit marked a turning point. Following the attack, Radiant’s total value locked dropped to $75 million. Within the same month, it fell further to $5 million. The protocol never recovered to pre hack levels.

For users of decentralized lending platforms, total value locked is a key metric. It reflects the amount of capital deposited in smart contracts and provides an indication of liquidity and activity. A sharp and sustained decline can reduce available liquidity for borrowers and limit incentives for lenders.

Transition to Maintenance State Instead of Full Shutdown

Radiant stated that it will not fully shut down its infrastructure. Instead, it will move into what it calls a maintenance state.

Under this model, the protocol’s frontend will remain online, and its smart contracts will stay accessible. Users will continue to be able to withdraw funds, repay loans, and manage existing positions. However, the decentralized autonomous organization will cease contributing to further development, upgrades, or expansion of the platform.

Radiant also encouraged users to actively manage their risk and reduce exposure where appropriate. This signals that while core functions remain operational, no additional improvements or security enhancements should be expected.

For crypto users, especially those engaging with lending and borrowing services, continued smart contract accessibility is critical. It allows positions to be closed in an orderly manner rather than forcing immediate liquidations or abrupt platform inaccessibility.

Ongoing Recovery Efforts and Remediation Portal

Despite the wind down decision, Radiant stated that it will continue recovery efforts related to the 2024 exploit. The protocol’s remediation portal will remain open, and any recovered funds will be returned to affected users.

No timeline or expected recovery amounts were specified. The commitment to keep the remediation process active suggests that the organization intends to manage outstanding claims even after development activities stop.

Security breaches remain a significant risk in decentralized finance. In this case, the inability to recover the $50 million in stolen assets appears to have played a central role in the protocol’s long term viability.

Market Reaction and RDNT Token Performance

Following the announcement that Radiant would wind down, the Radiant Capital token, RDNT, fell 4.2 percent.

The token previously reached an all time high of 58 cents in September 2022. It is now trading at a fraction of a cent, reflecting a prolonged decline since its peak and the impact of the exploit and subsequent loss of value locked.

For token holders, the shift to maintenance mode means that no further protocol expansion or feature development is expected. The announcement confirms that the project will no longer pursue growth initiatives under its decentralized governance structure.

Implications for DeFi Lending Users

Radiant’s wind down highlights the operational challenges faced by decentralized lending protocols after large scale security incidents. Even when core infrastructure remains functional, a sustained drop in liquidity and failure to secure new capital can limit long term sustainability.

Users who still have funds or positions on Radiant retain access to withdrawal and repayment functions. However, with no future development planned, the protocol will effectively operate in a static state.

For participants comparing lending platforms or using crypto as collateral for borrowing, the case underscores the importance of monitoring total value locked, governance activity, and security history when evaluating ongoing platform risk.

Our Assessment

Radiant Capital’s decision to wind down follows its failure to recover from a $50 million exploit in October 2024 and a sustained collapse in total value locked from $386.8 million to $5 million. The protocol will remain accessible in maintenance mode, allowing users to manage and withdraw funds, but it will cease development and expansion. The announcement triggered a further decline in the RDNT token and formalizes the end of Radiant’s growth phase after its earlier rapid expansion in 2023.