Stars Arena Loses Nearly $3 Million to Sneaky Attack

Stars Arena, a social token platform built on the Avalanche crypto platform where people can buy tokens to join special chat rooms, has lost almost $3 million to a sneaky attack. The company that looks into security, PeckShield, shared that attackers were able to take advantage of a weakness in Stars Arena's digital safety (smart contract). This caused the value of money locked in the project to drop to just $0.47, say the experts at DefiLlama. 

This big security problem happened because of a reentrancy issue, which means the attackers could sell access tickets for a much higher price than they were worth, even up to $2,740 each! After the attack, Stars Arena sent out a warning: “We've had a major security breach. We're looking into the issue. DO NOT deposit any funds."

This is not the first time Stars Arena has faced trouble. Not long ago, it had another smaller digital attack where some money was taken, but that issue was fixed quickly. Still, the company was criticized, with the CEO of Ava Labs, Emin Gun Sirer, calling the negative reports “FUD” (Fear, Uncertainty, Doubt). Despite these issues, Stars Arena promised its users: "We will fight, we will survive, we will win.”

To understand, Stars Arena is like FriendTech, where tokens are bought to enter an individual's chat rooms. The price for tokens goes up as more people buy them. It was made to be a fun place to interact and chat by using special tokens, but these recent issues have brought unexpected challenges and attention to the platform.