Avalanche-based Web3 Social Media App Stars Arena Recovers $3M After Exploit
Stars Arena, a Web3 social media app built on the Avalanche blockchain, has announced that it has successfully raised funds to cover the $3 million loss caused by an exploit on October 6. The team also stated that they will reopen the smart contract once a full security audit has been conducted.
The Stars Arena team stated, “We have secured the resources to close the gap caused by the exploit. Additionally, a special white hat development team is coming in to rapidly review the security of the platform.”
Important news: we have secured the resources to close the gap caused by the exploit.
Additionally, a special white hat development team is coming in to rapidly review the security of the platform.
We will re-open the contract with all the funds in full after a full security…— Stars Arena (@starsarenacom) October 7, 2023
Hack and Funds Transfer
Stars Arena initially confirmed the hack on October 6 and advised users not to deposit any funds while they investigated the breach. Blockchain security firms like SlowMist tracked the hacker’s actions and revealed that they had drained 266,103 Avalanche (AVAX) tokens worth nearly $3 million from Stars Arena. The hacker then transferred these funds to the Fixed Float crypto exchange.
SlowMist Security Alert@starsarenacom appears to have been stolen due to a major security breach in its smart contract, please do not deposit funds.
Currently, the hacker transferred 266,103 $AVAX to the address (0xa2Eb…ad7A). The address (0xa2Eb…ad7A) transferred… pic.twitter.com/o0YrX8ZOCK— SlowMist (@SlowMist_Team) October 7, 2023
Apology and DDoS Attack
A few hours after the hack, Stars Arena issued an apology and revealed that their website was under a Distributed Denial-of-Service (DDoS) attack. They acknowledged the exploit and expressed their commitment to recovering users’ funds and moving forward. The team also emphasized the importance of ensuring tight security before relaunching the smart contract.
The timeline for reopening Stars Arena remains uncertain, but the team assures that it will happen soon. This incident marks the second exploit on the platform within a week.
Hot Take: Stars Arena Recovers from Exploit and Aims for Enhanced Security
Stars Arena, the Avalanche-based Web3 social media app, has successfully recovered the $3 million lost in an exploit. Following the incident, the team secured funding to close the gap caused by the hack. They have also engaged a white hat development team to review the platform’s security. The smart contract will be reopened after a thorough security audit.
The hack involved the draining of 266,103 AVAX tokens from Stars Arena, which were subsequently transferred to the Fixed Float exchange. The team apologized for the exploit and revealed that their website was under a DDoS attack.
Moving forward, Stars Arena aims to ensure watertight security before relaunching the smart contract. Despite facing criticism, they remain committed to recovering users’ funds and advancing the platform. This incident highlights the importance of robust security measures in decentralized applications.
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