Stars Arena Loses $3 Million in AVAX Tokens Due to Smart Contract Exploit
The web3 social media app, Stars Arena, has experienced a security breach resulting in the loss of approximately $3 million worth of AVAX tokens from its smart contract. The exploit was confirmed by the Avalanche-based protocol, which advised users not to deposit any funds. The hack drained almost all funds from the protocol, leaving the total value locked at $0.051, according to DeFiLlama.
Re-entrance Issue Identified as Vulnerability
Security analysts at PeckShield have identified a re-entrance issue as the vulnerability that allowed the hackers to exploit the smart contract. This bug enabled them to sell tickets at a much higher price than their actual value. The exploiters managed to steal 266,103 AVAX tokens from Stars Arena and transferred the funds to the Fixed Float crypto exchange. Additionally, Stars Arena reported that its website was under a distributed denial of service (DDoS) attack.
Stars Arena Works on Recovering Funds and Enhancing Security
Despite the exploit and DDoS attack, Stars Arena assured users that it is actively working on recovering everyone’s funds and finding a solution for moving forward. The project has already secured resources to address the gap caused by the hack and has enlisted a special white hat development team to review platform security rapidly. Once a full security audit is conducted, the smart contract will be reopened with all funds intact.
Second Exploit Occurs within One Week
This recent $3 million hack is actually the second attack that Stars Arena has faced in just one week. The first attack occurred on October 5 and resulted in around $2,000 in losses. At that time, Stars Arena referred to the attack as part of a “coordinated FUD.” Avalanche’s co-founder, Emin Gün Sirer, also downplayed the first attack and encouraged users to return to enjoying the platform now that the exploit had been fixed.
Crypto Hacks Continue to Pose a Significant Risk
This year alone, hacking exploits have led to the loss of over $1.3 billion in crypto assets. The incident with Stars Arena further highlights the importance of robust security measures within the crypto industry.
Hot Take: Stars Arena Suffers Major Losses Due to Smart Contract Exploit
The recent exploit on Stars Arena’s smart contract has resulted in significant losses for the platform. Hackers were able to drain nearly all funds from the protocol, leaving users unable to deposit any funds. Stars Arena is actively working on recovering the lost funds and improving its security infrastructure. However, this incident underscores the ongoing risk of hacking exploits in the crypto industry, which have already led to billions of dollars in losses this year alone. It is crucial for platforms and projects to prioritize strong security measures to protect user assets.
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