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Stars Arena Lost $2.9 Million Due to a Hack Attack! Stars Arena, a social media platform and SocialFi application, was successfully conducting its business inspired by Friend.tech. Recently, due to a security vulnerability, the platform allowed hackers to seize $2000 from the platform. However, the team have determined this situation quickly and closed the security flaw immediately.
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.
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