Stars Arena Exploited For Estimated $2.9M In Security Attack

The trend of exploiting trending dApps continues in DeFi with now Stars Arena becoming the latest victim.

Just a day after Stars Arena being exposed to a non-critical bug, it has suffered a major security breach which drained the whole TVL from the contract.

The Avalanche based protocol has shared on its official Twitter (X) account that its smart contract is attacked. It has also said to users to avoid depositing funds.

There has been a major security breach with the smart contract.

We're actively checking the issue.

DO NOT deposit any funds.

Stay tuned for updates.
— The Arena ⚔️ (@TheArena) October 7, 2023

According to data by DeFiLlama, Stars Arena had a TVL (total value locked) of nearly $2.8 million on October 7 which all has been drained in the attack.

Blockchain security firm PeckShield identified the attack and explained that hackers have abused reentrancy in Stars Arena smart contract. By doing so, hackers have updated weight when the profile share is issued which enables selling a share at a much higher price of 274k AVAX.

Stars Arena was launched a couple of weeks ago and it recorded immense growth by surpassing $1 million TVL within days.

Also Read: Galxe Protocol Hit by DNS Attack, Losses $150K

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