Stars Arena Suffers $2.9 Million Hack
A social on-chain platform called Stars Arena, which is built on the Avalanche blockchain, experienced a major security breach resulting in a $2.9 million hack. The attack exploited a vulnerability in the platform’s smart contracts system. Stars Arena promptly informed its users about the breach and advised them to refrain from making any deposits while they investigated the issue.
An initial assessment conducted by Peckshield, a blockchain security and data analytics company, revealed that the hackers utilized a reentrancy exploit in Stars Arena’s shares contract. This allowed them to sell assets on the platform at inflated prices.
Aftermath
Emin Gün Sirer, founder and CEO of Ava Labs, downplayed the severity of the exploit by stating that the team behind Stars Arena could recover the funds due to their connections and the platform’s success. He expressed confidence that the vulnerability would be addressed and urged people to give the team time to make the necessary code changes.
Stars Arena later announced that they had secured the funds to reimburse affected users. They also enlisted the assistance of a white hat development team to conduct a thorough security review of the platform. Once this audit is completed, Stars Arena plans to reopen with restored funds, although no specific timeline was provided.
Hot Take: Stars Arena Takes Swift Action Following Major Hack
Stars Arena, an on-chain social app built on the Avalanche blockchain, suffered a $2.9 million hack Saturday, when hackers took advantage of a vulnerability in its smart contract, draining funds. Stars Arena’s team has already announced that it has secured the funds to close the gap and will complete a full security audit on the platform.
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