- Stars Arena faces a $2.9 million loss from a security breach, conflicting with initial reports.
- The platform serves as a user’s on-platform wallet and is actively investigating the incident.
- Community concerns grow regarding Stars Arena’s safety, impacting its competition with Friend.tech and its role in Avalanche’s C-chain trading.
In a distraught turn of events, another web3 platform has been a target of hijacking as Stars Arena has faced an approximated loss of $2.9 million today. As per the platform, there has been a breach in smart contracts, and further details are as follows.
The Security Breach
Stars Arena functions as a user’s on-platform wallet and allows them to easily track their AVAX holdings and oversee their earnings. Users have the option to export their wallets to external ones like MetaMask by acquiring their wallet’s private keys from the platform, ensuring both control and accessibility.
The Web3 social media application has announced that it is currently investigating the issue and is working to resolve the incident. They have advised users not to send any additional AVAX to prevent any serious damage.
On October 6th, Lilitch.eth, an account, identified yet another vulnerability and shared on Twitter that an attack had affected the Web3 Stars Arena application, causing losses exceeding one million USD.
Interestingly, The Stars Arena development team acknowledged the security incident, stating that only around 2,000 USD was taken, and they’ve since resolved the vulnerability. They alleged the attacker spent five USD in gas fees to inflict one USD in harm, possibly aiming to tarnish the project’s image.
However, the peckshield report indicates that losses are approximately $2.9 million. Nevertheless, the community is growing increasingly apprehensive about Stars Arena’s safety and dependability due to these recurring issues. As a SocialFi app, Stars Arena competes directly with Friend.Tech and has significantly contributed to trading activities on Avalanche’s C-chain in recent times.