Hackers Attack Stars Arena Project

Social token platform Stars Arena, which operates on the Avalanche blockchain, has been the victim of a security breach where all the funds in its smart contract have been exploited.

According to security analysts PeckShield, the exploit amounted to approximately $2.9 million. As a result, the total value locked in the project’s smart contract has plummeted to $0.47, according to DefiLlama. In response, Stars Arena issued a warning on their platform, advising users not to deposit any funds as they investigate the security breach.

PeckShield revealed that the vulnerability was due to a reentrancy issue, which allowed attackers to sell tickets at a much higher value than their actual worth, reaching up to $2,740 each.

Although users can still withdraw tokens from their wallets on the app, they will not receive any value if they choose to sell tickets that grant access to other individuals’ chat groups.

Stars Arena is a version of FriendTech, another app that uses tokens to grant access to private chat rooms.

These tokens are typically priced on a bonding curve, meaning their value increases as more people buy them. However, these apps often have high fees, with FriendTech charging 10% on every transaction for both the app and the group’s owner.