Stars Arena, a decentralized social media platform built on the Avalanche network, has suffered a major security breach, resulting in the loss of a significant amount of cryptocurrency. This comes barely a day after the decentralized application (dApp) reportedly fixed a loophole in its smart contract.<\/span><\/p>\n On Thursday, October 5, the Stars Arena team said \u2013 via a post on X<\/a> (formerly Twitter) \u2013 that it has averted a security exploit, which could have led to the loss of over $1 million worth of funds.\u00a0<\/span><\/p>\n On Saturday, October 7, a pseudonymous X user raised the alarm<\/a> about the suspicious movement of Avalanche (AVAX) tokens from the Stars Arena contract.\u00a0<\/span><\/p>\n A few minutes after this, the protocol\u2019s team confirmed \u2013 via a post on X \u2013 that there has been a \u201cmajor security breach with its smart contract.\u201d\u00a0<\/span><\/p>\n There has been a major security breach with the smart contract. <\/p>\n We’re actively checking the issue. <\/p>\n DO NOT deposit any funds. <\/p>\n Stay tuned for updates.<\/p>\n \u2014 Stars Arena (@starsarenacom) October 7, 2023<\/a><\/p>\n<\/blockquote>\n This exploit has also been flagged by blockchain security firm PeckShield, who disclosed that around $2.9 million in AVAX has been drained from the decentralized social media application.\u00a0<\/span><\/p>\n An initial breakdown<\/a> by the security company identified a reentrancy issue on the Stars Arena Shares contract. \u201cThe 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 of approximately 274,000 AVAX,\u201d PeckShield said.<\/span><\/p>\n As earlier noted, Stars Arena has been gaining some popularity in the past few days. In fact, the recent activity uptick on the Avalanche network<\/a> has been attributed to the rise of the decentralized social application.<\/span><\/p>\n However, this latest hack represents a significant deterrent to Stars Arena\u2019s growth. According to data from DeFiLlama, the protocol\u2019s total value locked has plummeted from $1.26 million to $0.47 in the past day, reflecting a 100% decline.<\/span><\/p>\n Stars Arena went live on Avalanche C-Chain \u2013 the blockchain component specifically designed <\/span>for running smart contracts on Avalanche \u2013 in late September. Although the Friend.tech-like<\/a> platform experienced some traction after launch, recent security concerns seem to be stirring skepticism around its growth.<\/span><\/p>\n This latest exploit will serve as an unfriendly reminder of the growing security concerns in the crypto space. Particularly, the cryptocurrency industry saw a significant surge in exploits and security breaches in the third quarter of 2023.<\/span><\/p>\n According to a quarterly report by blockchain security firm Beosin, the losses incurred only in Q3 2023 were larger than the total for the year\u2019s first half. A total of $889.26 million was lost to various attacks in the last quarter, compared to the $663 million lost in 2023\u2019s first six months.<\/span><\/p>\n<\/p>\n Beosin\u2019s report revealed that $540.1 million was lost to hacks, with decentralized finance (DeFi) accounting for 18% of this value. Notably, DeFi peer-to-peer service Mixin Network lost $200 million<\/a> due to a compromise in its cloud service provider database.<\/span><\/p>\n Featured image from Shutterstock, chart from TradingView<\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Stars Arena, a decentralized social media platform built on the Avalanche network, has suffered a major security breach, resulting in the loss of a significant amount of cryptocurrency. This comes barely a day after the decentralized application (dApp) reportedly fixed a loophole in its smart contract. On Thursday, October 5, the Stars Arena team said […]<\/p>\n","protected":false},"author":2,"featured_media":170076,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-170075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=170075"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170075\/revisions"}],"predecessor-version":[{"id":170078,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170075\/revisions\/170078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/170076"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=170075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=170075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=170075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Stars Arena Loses $2.9 Million To Attack, PeckShield Reveals<\/strong><\/h2>\n
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$900 Million Lost To Bad Actors In 2023 Q3<\/strong><\/h2>\n
Source: Beosin\/X<\/pre>\n
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AVAX price facing resistance at $11 on the daily timeframe | Source: AVAXUSDT chart on TradingView<\/a><\/pre>\n