Stars Arena, the Web3 application running on the Avalanche (AVAX) chain, has recently fallen victim to an exploit. The developers of the project have attributed this attack to malicious actors and competitors. According to the project, the losses incurred by Stars Arena amount to approximately $2,000.
The incident came to light when a Stars Arena user named Lilitch.eth reported the exploit on the social media platform X (formerly known as Twitter). Upon initial analysis by the user, it was estimated that the potential losses for the app could exceed $1 million.
The vulnerability in the Stars Arena code was discovered and exploited by users. Stars Arena, a Web3 social media app that operates on the Avalanche network, allows users to purchase tokenized assets from content creators, much like its alleged predecessor, Friend.tech. In fact, Friend.tech’s trading volume surpassed that of NFTs on the Ethereum network last month.
Since its launch at the end of last month, Stars Arena has contributed to the increased activity of AVAX, the native token of Avalanche.
The Stars Arena team has confirmed the attack on X. Contrary to earlier speculations, they have stated that the losses incurred amount to approximately $2,000. Furthermore, they have accused competitors and malicious actors of orchestrating this attack, suggesting that it was a coordinated effort aimed at spreading Fear, Uncertainty, and Doubt (FUD) about the project.
Several users have supported Stars Arena’s claim that the hackers may not have had financial motives behind the attack. This belief stems from the fact that the gas fees on the AVAX network would have outweighed any potential profits the attackers hoped to gain.
Meanwhile, Lilitch has refuted claims that the attackers spent more on gas fees than they gained. They have expressed their support for the app after the issue was resolved.