Stars Arena Responds to Security Breach

Avalanche-based Web3 social media platform Stars Arena has announced a series of measures to address the $3 million exploit that occurred on Oct. 6. Here's a breakdown of the key developments:

Securing Funding for Recovery

Stars Arena has reportedly secured the funding required to cover the $3 million loss resulting from the exploit.

Full Security Audit on the Horizon

To bolster its security measures, Stars Arena plans to reopen its smart contract only after conducting a comprehensive security audit. This audit aims to identify vulnerabilities that may have been exploited during the breach, ensuring a safer environment for users.

White Hat Team Engagement

Stars Arena has taken a stance by enlisting the expertise of a white hat hacking team. Comprising ethical hackers, this team will thoroughly assess the platform's security, identifying weaknesses and potential threats. 

Enhanced Fund Security

In an effort to enhance the security of user funds, Stars Arena has transferred the compromised assets from the original fee wallet to a new Safe multisig wallet. This new wallet structure requires 3 out of 6 signatures, placing control under the authority of all Stars Arena team members.

As per recent reports, Stars Arena has partially restored user access to the platform. During this time, users are encouraged not to deposit new funds, prioritizing safety.

‍

Two Exploits Within a Matter of Days

Stars Arena gained rapid popularity shortly after its launch in late September. The platform, a fork of Friend.tech, allows users to trade social tokens linked to X (formerly Twitter) accounts, contributing to its rapid growth and the addition of millions of dollars in value.

However, Stars Arena faced two recent security incidents, including the Oct. 6 breach and an unauthorized withdrawal of $2,000 on Oct. 5. These events have intensified discussions within the cryptocurrency community regarding the platform's security.

The security breach experienced by Stars Arena serves as a stark reminder of the ongoing security challenges in the cryptocurrency space. A report by Certik estimates that $700 million was lost through exploits in Q3 2023 alone. This also involves the Mixin network losing about $200 million in a hack.