Stars Arena Web3 Social Media App on Avalanche Suffers Malicious Attack
According to reports on social media, the Stars Arena Web3 social media app on Avalanche has been targeted by a malicious attack resulting in the loss of funds. The attack was discovered by a user named Lilitch.eth on October 5, who claimed that over $1 million was lost. The Stars Arena team confirmed the attack and referred to it as a “war” against the app. However, they stated that only around $2,000 was lost and that the exploit has been fixed.
Stars Arena: Tokenized Assets and Increased Activity on Avalanche
Similar to Friend.tech, Stars Arena allows users to purchase “shares,” which are tokenized assets issued by content creators. These tokens provide access to exclusive content and other benefits. Since the launch of Stars Arena, Avalanche has experienced a surge in activity, with daily transaction counts increasing by over 186% from October 3 to 4.
Claims of Exploitation and Response from Stars Arena Team
Lilitch.eth posted on X (formerly Twitter) that $1.1 million was being drained due to inexperienced developers who failed to create a proper copy of Friend.tech. They advised users to sell their shares in Stars Arena. Screenshots of a smart contract containing approximately 107,329 AVAX (worth over $1 million) were shared as evidence. Some users accused Lilitch.eth of spreading fear and doubt.
The Stars Arena team responded on X, stating that the exploit had been fixed. They explained that attackers were spending $5 in gas fees to drain $1 from the app, aiming to discredit it with coordinated FUD (fear, uncertainty, and doubt). The team held a Twitter Spaces event to provide further information and clarified that only $2,000 was lost in the attack.
Denial and Reconciliation
Lilitch.eth denied the claims made by the Stars Arena team, stating that attackers stopped when gas prices became too high to make the attack profitable. They also denied waging a “war” against the app and expressed support for it now that the exploit has been patched. The conflict was resolved, and Lilitch.eth declared friendship with Stars Arena.
Concerns and Action Taken by Friend.tech
Friend.tech users have been facing SIM-swap attacks, causing anxiety among its user base and similar apps. To address this issue, the Friend.tech team implemented a function to remove certain login methods on October 5.
Hot Take: Protecting Web3 Platforms from Malicious Attacks
The recent attack on Stars Arena highlights the vulnerability of Web3 platforms to malicious actors who seek to steal funds. It is crucial for developers to prioritize security measures and promptly address any vulnerabilities. Additionally, users should remain vigilant and take precautions to protect their assets on these platforms. As Web3 continues to evolve, ensuring the safety of users’ funds will be paramount in building trust and widespread adoption.
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