In a recent breach of security, the Web3 social media app StarsArena witnessed an unwanted incident where some funds were drained due to an exploit. StarsArena runs on the Avalanche network, mimicking Friend.tech’s model, where users purchase “shares” or tokenized assets released by content creators. However, this model faced its significant ordeal when hackers managed to drain funds via a loophole.
The exploit was announced on the platform X by a certain StarsArena user, Lilitch.eth, who estimated an excess of $1 million in losses due to the attack. The StarsArena team acknowledged the attack but stated the damage was less severe, with losses close to $2,000 only. They labelled the attack as a “war” but reassured users that the loophole had been effectively patched, preventing further damage.
The exploit revelation was met with mixed responses. While some users suspected Lilitch.eth of “fudding” (spreading fear, uncertainty, and doubt), StarsArena responded confidently, stating that the exploit had been mended. The app team also claimed that the attackers had been nonsensically spending more in gas ($5) to drain lesser funds ($1).
The avalanche network witnessed a significant activity rise, with a daily transaction count increase of over 186% around StarsArena’s launch. However, the recent event raised speculation about whether the security measures taken by such platforms are up to mark.
In the aftermath, the app team held a Twitter Spaces event to clarify the situation to the users, asserting that the attack had resulted in a loss of only $2,000. Lilitch.eth refuted this claim, stating that the attackers halted once gas prices increased beyond a profitable range for the attack.
However, at the conflict’s end, Lilitch.eth extended their support to the app, stating that now that the software had been patched, the app had their full backing.
The recent events sketch a telling story of the dynamic crypto sphere and the continuous security challenges accompanying these advanced technologies. On top of this, Friend.tech users were also targeted in a string of SIM swap attacks, adding another layer of concern for the safety of these platforms. With continuous efforts to patch loopholes and strengthening security measures, a swift action could lead to a stronger, more secure system moving forward.
Source: Cointelegraph
