VAX tokens valued at almost $3 million were stolen from Stars Arena, and the hacker allegedly sent the money to the Fixed Float cryptocurrency exchange. Recently, the Avalanche-based Web3 social media application Stars Arena declared that it had raised enough money to fill the $3 million hole caused by an exploit. The team also said that after conducting a thorough security examination, it will reopen the smart contract.
The Stars Arena team stated in a tweet that it has “secured the resources to close the gap caused by the exploit.” In addition, a dedicated white hat development team will soon assess the platform’s security.
Stars Arena acknowledged the attack and urged users not to make any deposits while the security vulnerability was being investigated.
Blockchain security companies like SlowMist followed the hacker’s activity and discovered that they had stolen 266,103 Avalanche — at the time, worth approximately $3 million — from Stars Arena and afterwards transferred the money to the Fixed Float cryptocurrency exchange.
The Stars Arena team apologised for the exploit and disclosed that its website was under a distributed denial of service (DDoS) attack a few hours after the hack.
“We sincerely regret what occurred. Our smart contract was abused, and money was taken out. The website is presently being DDoS attacked. We are putting out a plan to recover everyone’s money and take the Arena forward. We are putting out a plan to get everyone’s money back and take the Arena ahead,” the group stated.
The team stressed in an X Spaces on October 7 that it will take time before relaunching the smart contract to ensure security is “watertight.”
When the project will resume is currently unclear, but the crew promises that it will be “very soon.”. This is the second exploit that has been used on Stars Arena in the last week.
The Stars Arena crew called out “coordinated fud” and pledged to continue after receiving complaints about the security of the site from users of Crypto Twitter. Since Friend.tech’s launch in August, a number of other social financial sites have popped up, including Stars Arena.