Stars Arena, a popular social finance platform on Avalanche, had been operating smoothly with no major security incidents. However, recently, the platform was targeted by a sophisticated hacker who exploited a vulnerability in its smart contracts. Following the recent exploit, the hacker swiped away with a significant amount of funds from user accounts.
A security analysis found that the platform’s smart contracts were vulnerable to a reentrancy attack, which allowed the hacker to steal $2.9M worth of $AVAX from user accounts.
A recent update was published on their official account on X (formerly Twitter) that they had recovered approximately 90% of the exploited funds.
They also announced that an agreement was reached with the hacker regarding the recent security breach. The hacker agreed to return the stolen funds in exchange for a 10% bounty fee plus 1000 AVAX that was lost in a separate bridge hack.
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
After the announcement that the funds had been returned, many users expressed their relief and gratitude for the swift resolution of the incident. Some users noted that the recent update was a proof of the platform’s dedication to its users and their funds. The incident has left many users feeling reassured about the safety of their funds on the platform.
OK can we open the arena again please I need to get back in there and try more things!! pic.twitter.com/RWmYZenmh6
— artchick.eth 🔥👠 (@digitalartchick) October 11, 2023
The Stars Arena incident highlights the importance of thorough security audits and the need for developers to take all possible measures to secure their platforms. As the crypto industry continues to grow, it is vital that security remains a top priority for all involved.