On-chain social platform, Star Arena, recovers 90% of user assets after hack
Star Arena, an on-chain social platform built on the Avalanche network, has announced that it has recovered 90% of the user assets that were drained from its platform over the weekend. The platform reached an agreement with the hacker responsible for the breach, offering them a 10% bounty. As part of the agreement, the hacker was compensated with approximately $257,000 worth of Avalanche (AVAX) tokens.
In addition to recovering the funds, Star Arena also offered the hacker approximately 1000 AVAX lost in a bridge with the platform. The company stated that it has written a new smart contract to enhance security before placing the recovered funds back into circulation.
What happened this weekend?
On October 7th, Star Arena issued a warning about a smart contract hack and advised users not to deposit funds. This hack resulted in the drainage of 266,000 AVAX tokens and caused a slight impact on the price of AVAX. The team behind Star Arena apologized for the hack and assured users that they were working to recover all affected assets.
Star Arena’s competitor, Friend.tech, also experienced a similar incident where some accounts were drained and $385,000 in Ether was stolen. Observers have urged the development team to conduct a thorough audit of their smart contract to prevent future attacks.
Two attacks within days
Prior to the October 7th attack, a smaller incident occurred where the platform was under attack but the loophole was quickly patched. User Lilitch.eth reported on X that $1 million had been lost due to the developers’ inability to create a functioning copy of Friend.tech. However, the company clarified that the exploit had been fixed and only resulted in a $2,000 loss.
“You are under attack. Your right to platform diversity is under attack. Don’t get it wrong, this is coordinated FUD. The malicious actors were trying to spend $5 to drain $1 in TVL from our platform. Make note of that, they were throwing money away to TAKE YOUR MONEY,”
Hot Take: Star Arena recovers majority of user assets following hack
Star Arena, an on-chain social platform, has successfully recovered 90% of the user assets that were drained during a recent hack. The platform reached an agreement with the hacker responsible for the breach and offered them a 10% bounty. Additionally, Star Arena compensated the hacker with approximately $257,000 worth of AVAX tokens. The company has taken steps to enhance security by implementing a new smart contract before reintroducing the recovered funds into circulation. This incident highlights the importance of conducting regular security audits for smart contracts to prevent future attacks.
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