SocialFi platform Stars Arena, powered by Avalanche, has recovered approximately 90% of the assets lost due to the exploit. The refund was the result of negotiations with the hacker.
UPDATE:
We have recovered approximately 90% of the lost funds.
We reached an agreement with the individual responsible for the recent security breach.
The funds have been returned in exchange for a 10% bounty fee + 1000 AVAX that was lost in a bridge.
Total funds lost:…
— Stars Arena (@starsarenacom) October 11, 2023
On October 7, the Friend.Tech-inspired project lost 266,103 AVAX (~$3 million at the time of the attack) due to a “major security breach” in its smart contracts. As a result of the incident, the total value of assets blocked on Stars Arena dropped to zero.
“We have reached an agreement with the person responsible for the recent security breach,” the team said.
As agreed, the reward for the return of funds was 27,610 AVAX – 10% of the total amount plus 1000 AVAX lost in the cross-chain bridge.
The hacker transferred 239,493 AVAX to the platform in two transactions.
The Stars Arena developers also reported that after the incident they wrote a completely new smart contract. The source code is currently being audited by Paladin Blockchain Security specialists.
UPDATE:
• Our technical team led by @0xlocrian has written an entirely new smart contract
• We are finalizing a full contract audit with @0xPaladinSec
• The contract will become open-source after the audit is completed
• We will have a paused verified contract BEFORE…
— Stars Arena (@starsarenacom) October 11, 2023
The team promised to cover the shortfall before restarting the platform.
Let us remind you that the Stars Arena application, launched at the end of September as a fork of Friend.Tech on Avalanche, caused a sharp increase in activity on the network. The number of transactions in the ecosystem jumped from 790,000 to 1.2 million in less than a week.
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