Stars Arena Recovers Stolen Assets After Security Breach
Avalanche-based social app Stars Arena has successfully recovered nearly all of the assets it lost during a recent security breach. In an official update, the Stars Arena team announced that the hacker agreed to return the stolen $2.9 million worth of AVAX tokens. In return, they received a 10% bounty fee and 1,000 AVAX that was lost in a bridge.
Previous Security Breach and Patching Attempt
Last week, CryptoPotato reported that Stars Arena experienced a security breach in its smart contract, resulting in the loss of its total value locked (TVL). Prior to this incident, hackers had attempted to exploit the platform but only managed to take $2,000. The Stars Arena team claimed to have patched the issue after the initial exploit and addressed concerns from the crypto community about potential vulnerabilities.
Warnings and Second Security Breach
However, members of the X crypto community had warned about flaws in Stars Arena’s base contract and advised users to sell their shares in the protocol. Despite these warnings, CEO Emin Gün Sirer of Ava Labs, the company behind Avalanche blockchain, dismissed them and assured that the issue had been resolved. Unfortunately, two days later, Stars Arena was hacked again, resulting in a loss of $2.9 million from its TVL.
Cooperation with the Attacker
Fortunately, the perpetrator responsible for stealing Stars Arena’s assets reached out on October 11 and expressed their willingness to cooperate. They returned 239,493 AVAX out of the stolen 266,104 AVAX, keeping 26,610 AVAX for themselves. The Stars Arena team confirmed that approximately 90% of the funds have been recovered through this agreement.
Hot Take: Stars Arena Recovers Most of the Stolen Funds
Stars Arena, an Avalanche-based social app, has successfully recovered the majority of the assets it lost during a recent security breach. The hacker responsible for the breach agreed to return $2.9 million worth of AVAX tokens in exchange for a 10% bounty fee and 1,000 AVAX. The Stars Arena team had previously patched an issue following an attempted exploit but faced criticism for potential vulnerabilities. Despite warnings from the crypto community, CEO Emin Gün Sirer dismissed concerns about the protocol’s security. However, Stars Arena was hacked again, resulting in a loss of $2.9 million from its total value locked (TVL). Fortunately, the attacker later cooperated and returned a significant portion of the stolen funds.
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