Just one day after Stars Arena was compromised by a non-critical issue, it experienced a serious security breach that resulted in the loss of the entire TVL from the contract. The Avalanche-based protocol announced that its smart contract is under attack on its official Twitter (X) account. Additionally, it has advised consumers not to deposit money.
DeFiLlama data indicates that on October 7, Stars Arena had a TVL (total value locked) of roughly $2.8 million, which was completely depleted in the attack.
PeckShield, a blockchain security company, discovered the assault and stated that hackers had taken advantage of reentrancy in the Stars Arena smart contract. In order to sell a share at a significantly higher price of 274k AVAX, hackers altered weight when the profile share was issued.
Since its introduction a few weeks ago, Stars Arena has experienced tremendous growth, topping $1 million TVL in just a few short days.
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