According to Cointelegraph: StarsArena, a Web3 social media app operating on the Avalanche network, has reported a loss of funds to a malicious attack on October 5. While user Lilitch.eth claimed the exploits led to the loss of over $1 million, the StarsArena team confirmed that the damages were approximately $2,000.
StarsArena, a platform reminiscent of Friend.tech, enables users to purchase "shares" or tokenized assets provided by content creators, who, in turn, grant access to exclusive content and other benefits. Avalanche has experienced a significant user transaction increase since StarsArena's launch, with the daily transaction count rising by over 186% between October 3 and 4.
Lilitch.eth spread the news of the attack on X (known previously as Twitter), stating, "StarsArena is being drained of funds. 1.1 million dollars are being drained right now because of noob devs who couldn't make a copy of http://Friend.tech that will work properly," and advised, "If you hold ANY SHARES in StarsArena you should sell while you still can."
According to Lilitch's post, a contract at address 0xA481B139a1A654cA19d2074F174f17D7534e8CeC contained approximately 107,329 Avalanche tokens, valued over $1 million during the attack.
However, numerous users accused Lilitch of fear-mongering, including ZSwapDEX developer Mork, who defended that these breaches could not yield profits for the attacker, as transaction costs would surpass the value of the extracted Avax. Mork added that contracts can be updated as they are proxy contracts.
The StarsArena team has confirmed the attack, likening it to a "war" against the app, and assured users that the platform's vulnerabilities have been patched following the incident.