Hackers Steal $2.9 Million from Stars Arena Social App
Stars Arena, an Avalanche-based social app, has fallen victim to a hack, resulting in the theft of approximately $2.9 million in AVAX tokens. The platform has issued an apology and expressed its commitment to compensating affected users.
Stars Arena Gains Popularity
Stars Arena, which bears resemblance to Ethereum-based Friend.Tech, quickly gained attention within the community after its launch a week ago. The protocol’s followers on X have surged to over 25,000 during this short period.
Exploit Announcement
The team behind Stars Arena announced the exploit on X, revealing that there had been a breach of the smart contract. They urged users not to deposit any funds and assured them that they were actively investigating the issue.
Approximately $3 Million Stolen
Although the exact amount stolen was not disclosed by the team, blockchain security resource PeckShield estimates that it is close to $3 million in AVAX tokens. Additionally, DeFiLlama data shows that the attackers drained almost all of the project’s total value locked, leaving only about $0.5.
Security Vulnerabilities Ignored
Prior to the hack, some X users had warned about potential security vulnerabilities in Stars Arena’s smart contract. However, Avalanche’s founder, Emin Gün Sirer, downplayed these warnings.
Apology and DDoS Attack
The Stars Arena team issued an update apologizing for the incident and cautioning users to avoid the site due to an ongoing DDoS attack. They reassured users that they are working on a solution to recover the stolen funds.
Hot Take: Stars Arena Falls Victim to Major Hack
The recent hack against Stars Arena has once again highlighted the vulnerabilities present in the cryptocurrency industry. Despite the team’s efforts to secure their platform, hackers managed to exploit a breach in the smart contract, resulting in a significant loss of funds for users. This incident serves as a reminder for both developers and investors to prioritize security measures and remain vigilant against potential threats. As the crypto space continues to evolve, it is crucial for projects to stay one step ahead of hackers and implement robust security protocols to protect user assets.
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