{"id":71691,"date":"2023-10-12T03:17:07","date_gmt":"2023-10-12T07:17:07","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/avalanche-based-star-arena-recovers-90-of-hacked-funds-offers-10-bounty\/"},"modified":"2023-10-12T03:17:10","modified_gmt":"2023-10-12T07:17:10","slug":"avalanche-based-star-arena-recovers-90-of-hacked-funds-offers-10-bounty","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=71691","title":{"rendered":"Avalanche-based Star Arena Recovers 90% of Hacked Funds, Offers 10% Bounty"},"content":{"rendered":"
\n

On-chain social platform, Star Arena has announced a recovery of assets drained from its platform over the weekend following an agreement with the hacker.\u00a0<\/p>\n

In a post on X (formerly Twitter)<\/u><\/a>, the platform disclosed that 90% of user assets have been recovered while the hacker was offered a 10% bounty.<\/p>\n

<\/oembed><\/figure>\n

The agreement means the company recovered 90% of 266,000 Avalanche (AVAX<\/u>) tokens worth nearly $3 million while the hacker was offered 27,610 AVAX tokens approximately $257,000.<\/p>\n

\n

\u201cWe have recovered approximately 90% of the lost funds. We reached an agreement with the individual responsible for the recent security breach.\u201d<\/i><\/p>\n<\/blockquote>\n

Per the agreement, the hacker would also be compensated about 1000 AVAX lost in a bridge with the platform adding in a separate post that it has written a new smart contract to ensure security before placing recovered funds, making a subsequent rollout.<\/p>\n

What happened this weekend?\u00a0<\/h2>\n

Star Arena is a web3 social platform built on the Avalanche network that allows users to monetize their content and popularity and link their Twitter accounts, trading with AVAX.\u00a0<\/p>\n

On Oct 7, the company announced a warning<\/u><\/a> of the smart contract hack asking users not to deposit funds. The hack led to 266,000 AVAX drains, further slightly affecting the price of AVAX.<\/p>\n

<\/oembed><\/figure>\n

The team apologised for the hack<\/u><\/a> adding that they were at war with bad actors but will work to recover all user assets.<\/p>\n

\u201cA special white hat development team is coming in to rapidly review the security of the platform. We will re-open the contract with all the funds in full after a full security audit. This will happen very soon.”<\/i><\/p>\n

Both Star Arena and its competitor Friend.tech recorded significant traction this past month and have both been hit by hackers.\u00a0<\/p>\n

Friend.tech suffered a similar incident<\/u> when some accounts were drained and the malicious players carted away with $385,000 in Ether.<\/p>\n

Two attacks within days\u00a0<\/h2>\n

Observers have called on the development team to properly audit the smart contract to prevent any attacks in the future.<\/p>\n

Before the attack on Oct 7, a smaller incident occurred with the team announcing that the platform was under attack but the loophole had been patched.<\/p>\n

The incident broke out when user Lilitch.eth announced on X that $1 million had been lost<\/u><\/a> because the developers could not make a copy of Friend.tech that worked properly.\u00a0<\/p>\n

The company subsequently clarified saying the exploit has been fixed with a loss of $2,000 recorded.\u00a0<\/p>\n

\n

\u201cYou are under attack.<\/i><\/p>\n

Your right to platform diversity is under attack<\/i><\/p>\n

Don\u2019t get it wrong, this is coordinated FUD.<\/i><\/p>\n

The malicious actors were trying to spend $5 to drain $1 in TVL from our platform.<\/i><\/p>\n

Make note of that, they were throwing money away to TAKE YOUR MONEY,\u201d <\/i>they added.\u00a0<\/p>\n<\/blockquote><\/div>\n