- Stars Arena, the Web3 App on the Avalanche (AVAX) chain has suffered an exploit
- The developers of the project accused malicious actors and competitors for the hack
- The losses Stars Arena suffered, according to the project, was around $2,000
YEREVAN (CoinChapter.com) — The Stars Arena Web3 app on Avalanche (AVAX) has suffered losses due to a recent malicious attack on the platform. The exploit came to light after a Stars Arena user known as Lilitch.eth reported about the exploit on social media platform X (formerly Twitter). According to the user’s initial analysis, the total loss the app could potentially suffer is over $1 million.
“1.1 million dollars are being drained right now…If you hold ANY SHARES in Stars Arena you should sell while you still can,”the user warned.
Stars Arena is a Web3 social media app operating on the Avalanche network. Just like Friend.tech, from where the app is allegedly copied, it allows users to purchase tokenized assets from content creators.
Last month, Friend.tech’s trading volume surpassed that of NFTs on the Ethereum (ETH) network.
AVAX, the native token of Avalanche, has experienced increased activity since Stars Arena’s launch at the end of last month.
Stars Arena accuses malicious actors of the hack
The Stars Arena team also confirmed the attack on X. However, unlike earlier speculations, it stated that it resulted in approximately $2,000 in losses.
The post also accused competitors and malicious actors of the attack on the app.
“We’re being targeted by malicious actors in the space that want to steal your money… They don’t want diversity. They want only monopoly,”the post said.
The developers also claimed that the alleged coordinated attack had the motive to spread Fear, Uncertainty, and Doubt (FUD) against the project.
The accusation predominantly spread from the idea that hackers could not have made any profits from the attack. This is because the gas fees on the AVAX network would cost more than any profit they hoped to withdraw.
“The malicious actors were trying to spend $5 to drain $1 in TVL from our platform. Make note of that, they were throwing money away to take your money,”the platform told users.
Meanwhile, Lilitch denied claims that attackers spent more on gas than they gained and expressed support for the app after the issue was resolved.