Stars Arena Faces Major Security Breach
Stars Arena, a social platform supported by Avalanche’s Contract Chain, has experienced a significant security breach. The platform, which allows users to create and monetize online communities, has been gaining popularity since its launch last month. By linking their Twitter accounts and using Avalanche’s AVAX, influencers and content creators can monetize their fan base.
The Attack and its Impact
On Friday night, Stars Arena’s official Twitter account issued a warning confirming that their smart contract had been targeted. Hackers reportedly transferred 266,103 AVAX (equivalent to about $2.85 million) using the FixedFloat exchange service. This news caused the price of AVAX to drop from $11.56 to $10.78, leading users to advise removing Stars Arena from their Twitter accounts.
Apologies and Recovery Efforts
Hours later, Stars Arena issued an apology for the smart contract exploit and revealed that they were still under a distributed denial-of-service (DDoS) attack. They assured users that efforts were being made to recover everyone’s funds and resolve the situation.
The Stars Arena team hosted a live Twitter Spaces session on Saturday to provide further details about the incident. They announced that a white hat development team would be conducting a thorough security audit before reopening the contract with all funds intact.
Increased Transactions and Previous Exploit
Prior to the attack, there was a surge in transactions on Stars Arena, with volume increasing by 248% within 24 hours. Earlier in the week, hackers managed to steal $2,000 from the platform through an exploit that was quickly addressed.
In a separate incident this week, Friend.tech, another social token-driven platform, also fell victim to hackers. Four users of the Ethereum layer-2 network Base-backed platform had their accounts drained, resulting in a loss of $385,000 in Ethereum.
Hot Take: Stars Arena Faces Security Breach and Works Towards Recovery
Stars Arena, a popular social platform backed by Avalanche’s Contract Chain, recently suffered a major security breach. Hackers exploited the platform’s smart contract, resulting in the transfer of millions of dollars worth of AVAX tokens. This incident caused a drop in AVAX’s price and raised concerns among users.
Stars Arena promptly apologized for the breach and assured users that efforts were underway to recover funds and address the situation. They also announced plans to conduct a thorough security audit before reopening the platform.
This incident serves as a reminder of the ongoing risks faced by crypto platforms and highlights the importance of robust security measures. Users are advised to exercise caution and follow recommended security practices when engaging with such platforms.
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