Ava Labs CEO Emin Gün Sirer tweeted the attackers spent much more money compared to the revenue they obtained from this attack. In his tweet, Sirer pointed out that the attackers spent $0.25 for each $0.04 gain.

However, these attacks repeated again. Because of this, the ongoing attack led to much bigger damage. So, this attack caused that Stars Arena Lost $2.9 Million.

Our initial analysis on today’s @starsarenacom $2.9M hack indicates a reentrancy issue on the Stars Arena: Shares contract at https://t.co/Hg6C8MCPan

The reentrancy is abused to update the weight when the share/ticket is issued so that 1 share can be sold at a much higher price… https://t.co/17CxO3uLbe pic.twitter.com/fouVjevYTs

— PeckShield Inc. (@peckshield) October 7, 2023

The analyses made on this last Stars Arena attack reveal how the hackers carried out and stole millions. According to the PeckShield Inc.’ s report, a Blockchain security and data analysis company, the hackers carried out the attack  through a reentrancy issue in the Stars Arena: Shares contract. The reentrancy issue is exploited to update the weight when the share/ticket is issued, so that 1 share can be sold at a much higher price or about 274 thousand $AVAX.

There has been a major security breach with the smart contract.

We’re actively checking the issue.

DO NOT deposit any funds.

Stay tuned for updates.

— Stars Arena (@starsarenacom) October 7, 2023

In a statement, the team of Stars Arena informed users not to deposit any funds. Also, they said that work is ongoing due to the security breach that occurred.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’ t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news.

The post Stars Arena Lost $2.9 Million Due to a Hack Attack! appeared first on Coin Engineer.

Inspired by Friend.tech, the team behind Stars Arena , denied the event referred as “coordinated FUD” after they closed a security vulnerability that caused hackers to capture $2000 from the Avalanche-based decentralized social media platform.

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On October 5, the team stated that the vulnerability had been fixed in a post on Twitter. ‘Don’t misunderstand, but we’re in the middle of a war,’ they said.

THE EXPLOIT HAS BEEN FIXED.

BUT DON’T GET THIS WRONG WE ARE AT WAR.

We’re being targeted by malicious actors in the space that want to steal your money.

The little guy is under attack.

You are under attack.

Your right to platform diversity is under attack.

Don’t get it… pic.twitter.com/DmbMdf9cAq

— Stars Arena (@starsarenacom) October 5, 2023

The attack was proven to be economically unviable for the attackers. This attack caused a big increase in Avalanche’s gas fees. This made the gain from the hack much more costly than expected.

As a result, it was claimed that the attackers spent more on gas fees than they earned from this vulnerability.

Ava Labs CEO Emin Gün Sirer posted a Tweet related to the topic. In his tweet, the CEO emphasized that for every $0.04 gained from the vulnerability, hackers spent an average of $0.25.

So much FUD about a Stars Arena exploit that has (1) already been fixed, (2) cost the attacker $0.25 to make $0.04, and (3) the attacker extracted a sum total of only $2,000. Now that it’s over, let’s get back to having fun in the arena.

— Emin Gün Sirer (@el33th4xor) October 5, 2023

Despite the relatively unsuccessful exploitation, members of the crypto community criticized the Stars Arena team.

Finally, it’s worth remembering that the Stars Arena platform is the latest application to join the growing list of social finance platforms like Alpha in the Bitcoin network, Friendzy on Solana, and PostTech on Arbitrum.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’ t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news.

The post Stars Arena Eliminates FUD by Closing Security Vulnerability! appeared first on Coin Engineer.