Stars Arena Recovers Most Stolen Crypto Following Cyberattack, Enhances Security Measures
Summary:
Web3 social platform Stars Arena regained almost all of the cryptocurrency stolen in an October 7 cyberattack. A reward of 10% was offered to the perpetrator, leading to the recovery of about 90% of the stolen 266,000 Avalanche (AVAX) tokens. Since the breach, Stars Arena has created a new smart contract and is conducting a security audit before deploying the reclaimed funds. This followed a smaller hack where the platform lost approximately $2,000. Their main competitor, Friend.tech, has also been a target of similar cyberattacks.
Stars Arena, a Web3 social platform, has announced the recovery of almost all the digital currency that was stolen during a cybersecurity breach on October 7, although 10% was offered as a reward to the perpetrator. In a tweet posted on October 11, the platform confirmed the return of around 90% of the compromised 266,000 Avalanche (AVAX) tokens, which were worth approximately $3 million at the time. The return was negotiated in exchange for a bounty of 27,610 AVAX, equivalent to around $257,000, to the attacker. The reward additionally covered 1,000 AVAX valued at over $9,000, which was apparently lost by the attacker in a bridge.
In a distinct post, Stars Arena announced the creation of a new smart contract, and that an audit was underway prior to launching it using the reclaimed funds. The community was initially informed about the significant security compromise of its smart contract, resulting in the loss of funds on October 7. In a subsequent update, the platform revealed its success in securing funds to make up for the deficit created by the breach, and that a development team was hired to conduct a comprehensive security audit. However, the exact details of how the breach occurred have yet to be divulged.
Days prior to this incident, on October 5, Stars Arena fell victim to a smaller hack, with the attackers making away with an approximated $2,000, according to the company. The breach was reportedly due to the failure of Stars Arena's developers to notice a susceptible price function in the platform's smart contract. This oversight allowed the attacker to trade user shares essentially for free and receive AVAX in return, as explained by an anonymous Twitter user, "0xlilitch". Stars Arena has since rectified the vulnerability.
Friend.tech, a major rival to Stars Arena, has also reportedly experienced targeted SIM-swap attacks. The platform has responded by enhancing security measures to prevent any such attempts.
Published At
10/12/2023 1:04:51 AM
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