The digital stage of Stars Arena, a social platform fortified by the capabilities of Avalanche’s Contract Chain, found itself under the shadow of an enormous security demon. Saturday rang in an official Stars Arena tweet alert, cautioning about a hard-hitting offensive against their smart contract. A red flag for users to hold their fund deposits was raised while a dig into the issue was initiated.
The security breach was brought to light by crypto sentinel Redline, pointing out a successful pilferage of 266,103 AVAX (valued around $2.85 million) by hackers, taking advantage of the FixedFloat exchange service. The aftershock of this revelation triggered an AVAX price tremor that dipped from $11.56 to $10.78, leading to a wave of outcry from users to delink Stars Arena from their Twitter accounts.
Stars Arena, subsequently, expressed contrition for the circumstance and shed light on simultaneous enduring strikes, the likes of a distributed denial-of-service (DDoS) attack. They rallied the spirits of their users by vowing to restore the platform functionality and recuperate all funds.
Attempting to control the aftermath, Stars Arena found solace in a live Twitter Spaces session, dishing out a comprehensive breakdown of the breach. They also let the cat out of the bag on their next plan of action – an in-depth security review of the platform by a team of white hat development specialists. Once the audit is satisfactorily wrapped up, they intend to reactivate the contract, ensuring all funds are fastened securely.
Established barely a month ago, during the meteoric rise of Friend.tech, Stars Arena has been accumulating recognition consistently. Fuelled by a mechanism that empowers influencers and public figures with an opportunity to monetize their fan base via exclusive content access and lucrative offers, the platform was cooking up a storm. The smart contract attack, however, occurred during an otherwise victorious phase, marked by a jaw-dropping 248% trading volume surge in the 24 hours leading up to the offensive shock wave.
This attack isn’t the first to grace Stars Arena’s stage. Just earlier in the week, an exploit had lead to a loss of $2,000 while another lost $385,000 worth of digital valuables in just 24 hours to SIM-swapping attacks on users of friend.tech. Overall, the stage is set for discussions concerning hacks, exploits, and scams, which rocked the crypto space in September, resulting in a record $332 million loss.
Source: Cryptonews
