Web3 social media platform Stars Arena has announced that it has successfully recovered almost all of the cryptocurrency that was stolen during an exploit on October 7th. Only a small portion remains missing, and the platform has agreed to pay a 10% bounty to the person responsible for returning the funds.
Stars Arena reported that around 90% of the 266,000 Avalanche (AVAX) that was initially stolen, worth approximately $3 million at the time, has been returned. The platform reached an agreement with the individual responsible for the security breach, offering a bounty of 27,610 AVAX, equivalent to nearly $257,000.
In addition to the bounty, the agreement also includes compensation for 1,000 AVAX, valued at over $9,000, which seemed to have been lost by the exploiter in a bridge. Stars Arena took to Twitter to provide an update on the recovery progress and expressed gratitude for the return of the majority of the stolen funds.
Stars Arena has been proactive in addressing the exploit. The platform has written a new smart contract and is currently finalizing an audit of the new contract before placing the returned funds and launching it. This demonstrates Stars Arena’s commitment to ensuring the security and integrity of its platform before moving forward.
The social media platform first alerted its community to the exploit on October 7th, referring to it as a “major security breach” that resulted in funds being drained from its smart contract. Stars Arena quickly secured funding to address the issue and hired a development team to conduct a full security audit. However, the specific details of how the exploit occurred have not been disclosed by the team.
Interestingly, Stars Arena had also experienced a smaller exploit just two days prior, on October 5th. In that incident, hackers managed to steal around $2,000. The exploit was attributed to the platform’s developers missing a vulnerable price function in the smart contract, allowing the exploiter to sell user shares at no cost in exchange for AXAX tokens.
Stars Arena promptly patched the vulnerability following the previous exploit and has been actively working to address any potential security gaps within its platform. This incident highlights the importance for blockchain-based platforms to remain vigilant and proactive in their security measures.
Stars Arena’s competitor, Friend.tech, has also faced security challenges, with users experiencing targeted SIM-swap attacks. Friend.tech has implemented additional security features to mitigate these attempts, emphasizing the need for robust security measures in the Web3 space.
Overall, Stars Arena’s recovery efforts demonstrate its dedication to its users and the security of their funds. By swiftly addressing the exploit, providing compensation, and improving its smart contract, Stars Arena aims to regain the trust of its community and prevent future security breaches.