Stars Arena Raises Funds to Cover $3M Loss from Hack, Primes for Security Audit and Relaunch
Summary:
Stars Arena, a Web3 social media app, has successfully secured funding to replace $3 million lost in a recent exploit, with plans to reopen their smart contract post a full security audit. The platform also faced criticism on their security post a Distributed Denial-of-Service (DDoS) attack, and another exploit that saw the loss of $2,000 worth of AVAX. No specific timeline has been set for the project's reopening, although the team assures that it will happen "very soon.
The social media application Stars Arena, which operates on the Avalanche-based Web3 platform, has managed to acquire the necessary funding to fill the $3 million deficit resulting from an exploit on October 6. Once a comprehensive security assessment has been concluded, they intend to reestablish access to their smart contract. Stars Arena reported that efforts to remedy the financial gap made by the security exploit have been successful. They also mentioned the introduction of an expert ethical hacker team to swiftly conduct an examination of the platform's security measures.
Initially, on October 6, Stars Arena asserted the occurrence of a hack and advised its users to refrain from supplying any funds during the breach investigation. Blockchain security businesses such as SlowMist were able to monitor the hacker's activities, noting that they had extracted 266,103 Avalanche (AVAX), an amount equivalent to nearly $3 million, from Stars Arena. The stolen funds were then transferred to the Fixed Float cryptocurrency exchange.
Apologies were issued by the Stars Arena team few hours following the breach and they also brought to light that their site had fallen victim to a Distributed Denial-of-Service (DDoS) attack. They expressed sincere regrets about this incident, revealing that their smart contract was exploited and the funds were depleted. Currently under a DDoS attack, they are putting efforts into developing a means of recovering everyone's funds and allowing a smooth future progression for the Arena.
The Stars Arena team later stated in the October 7 X Spaces, that they needed to ensure fool-proof security before rebooting the smart contract. While no exact timeline has been established for when the project will be resumed, team members are hopeful that it will be "very soon." This is not the first time Stars Arena has experienced a security exploit within the week. On October 5, it was reported by Cointelegraph that Stars Arena had rectified a vulnerability following a hack that resulted in the loss of $2,000 worth of AVAX from the platform.
Following reproach from Crypto Twitter members regarding the platform's security, the Stars Arena team denounced these "coordinated fud" attacks and pledged to persevere. Stars Arena is among the increasing number of social finance platforms to have emerged since the Friend.tech's market entry in August.
Published At
10/8/2023 1:38:05 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.