October 7th SocialFi-Stars Arena, an app inspired by Friend.Tech, lost 266,103 AVAX (~$3 million at the time of the attack) due to a “major security breach” in its smart contracts.
There has been a major security breach with the smart contract.
We’re actively checking the issue.
DO NOT deposit any funds.
Stay tuned for updates.
— Stars Arena (@starsarenacom) October 7, 2023
“We are actively studying the problem. Do not deposit any funds [в протокол]”, the developers warned.
Redline analysts were the first to notice the hack. According to them, the hacker has already withdrawn funds using the FixFloat exchanger.
🚨BREAKING!🚨
$3,000,000 HAS BEEN GONE FROM STARS ARENA SMART CONTRACT
DO NOT INVEST MONEY IN STARSARENA AT THIS MOMENT
Waiting for an explanation from @starsarenacom pic.twitter.com/5UpP2h6X1Q
— redline (@redlinemeta) October 7, 2023
Later, representatives of Stars Arena stated on compensation of assets lost during the exploit. Having temporarily limited access to the platform, the project team invited security experts to conduct additional checks.
Funds from the original hot wallet are also transferred to a new multisig address under the control of the Stars Arena developers.
According to DeFi Llama, the total value of locked assets on the platform has fallen to zero. This is likely due to the coins being moved to another wallet.
Shortly before the attack, a critical vulnerability was discovered in the protocol, thanks to which attackers could withdraw AVAX tokens from smart contracts of the Web3 social network.
After some time in Stars Arena reported about fixing a bug in the getPrice() function. At that moment, high fees in Avalance did not allow hackers to withdraw cryptocurrency due to unjustified costs.
Amid the hack, the AVAX rate fell by 3% in one day, from $10.19 to $9.86, according to CoinGecko.
Let us remember that Stars Arena, launched at the end of September, caused an increase in activity in Avalance. The number of transactions in the ecosystem jumped from 790,000 to 1.2 million in less than a week.
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