Stars Arena, a SocialFi platform, has suffered a major security breach. The platform was the recipient of a hack that saw it lose $3 million in AVAX. The platform has gained popularity among creators by allowing them to sell “Tickets” to followers on the Avalanche Blockchain. The “Ticket” grants users exclusive access to a creator’s private chat rooms and content.
On October 7, Start Arena saw an attack on its locked funds where the attackers exploited a smart contract that was used to secure tokens on the social application and drain the funds leaving less than $1 behind. Some users of X (formerly Twitter) had warned the platform of a potential security issue that would make them susceptible to attacks like that.
The SocialFi platform was launched just a week ago and quickly gained a following among Avalanche community members. Users, in particular, found themselves reaping significant rewards, with some earning up to 1000 AVAX in trading fees. Moreover, the platform played a role in boosting AVAX token prices by as much as 6% at one point during the week.
This isn’t the first time that the Crypto market has seen a project suffer hacking attempts and stealing of funds. In 2023 alone, the crypto community has seen hacks amounting to $1.3 Billion.
Stars Arena has confirmed the incident and has warned users to avoid depositing further funds while they investigate the issue.
