Stars Arena secures funding to plug $3M shortfall following exploit, will reopen after security audit

cyptouser8 months agoCryptocurrencies News165

Stars Arena, an Avalanche-based social media dApp, has responded to a recent $2.9 million security breach by securing the necessary resources to cover the associated losses.

The platform has also engaged a white hat team to conduct a security assessment. The team is composed of ethical hackers and will rigorously assess the platform for vulnerabilities.

Once the comprehensive security review is finalized, the platform has pledged to re-enable its smart contract, with insiders hinting that this move is on the near horizon.

The platform’s response follows two recent security issues: the aforementioned breach on Oct. 7 and a separate $2,000 unauthorized withdrawal on Oct. 5.

Increased attention

Since its launch in late September and due to its similarities with the Base-native platform, Friend.tech, Stars Arena has been a point of discussion in the crypto community. The recent security incidents have intensified this focus.

Blockchain security firm Peckshield provided details about the recent exploit, classifying it as a reentrancy issue. In a related update, web3 security firm SlowMist reported a transfer of 50 AVAX from the stolen funds to an address linked to the FixedFloat crypto exchange.

Following the breach, data from DefiLlama showed a significant drop in Stars Arena’s Total Value Locked (TVL), now standing at $0.051.

Security concerns

The Web3 ecosystem continues to expand, and with it comes security challenges.

In a quarterly insight by blockchain security entity Immunefi, a staggering $685.51 million in assets were reported as lost to malevolent actors in the third quarter of 2023.

Cryptocurrency breaches accounted for a daunting 96% of this figure, translating to over $662.85 million across 76 discrete incidents. Among these, a breach targeting the Mixin Network emerged as the most severe — resulting in a $200 million loss.

For platforms like Stars Arena and the broader crypto community, these incidents underline the imperative nature of constant security enhancements to ensure both assets and trust remain intact.

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