Novel Avalanche-based SocialFi exploited by same attacker with $2.9 million lost
A SocialFi protocol on Avalanche is targeted by the second attack in three consecutive days. It seems that the same malefactors might be exploiting a well-known vulnerability, while some commentators accuse the team of an insider job.Stars Arena, an overhyped SocialFi protocol on the Avalanche blockchain, was attacked today, Oct. 7, 2023, at about 6 a.m. UTC. The aggregated losses of its liquidity ecosystem might exceed 274,000 AVAX or almost $2.
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 updatesThe"reentrancy bug" was abused by the attacker to maliciously adjust the price that has to be paid for one"share," a kind of in-app currency. The attackers made it possible to buy a share and then sell it at a dramatically increased price.
It should also be noted that two days ago, soon after its launch, the Avalanche-based SocialFi was already exploited for over $1 million. AsBoth Avalanche key figureheads and Stars Arena team representatives stressed that thanks to gas inefficiency, the attack was not so dangerous.However, as it happened amid the"SocialFi frenzy" triggered by Friend.tech's success, the Stars Arena drama caused much stir in the Web3 community.
Many commentators on X highlighted that"reentrancy" attacks are well-known malicious practices previously used for price manipulations in DeFi: Reentry issue is a old and classical attack, should be checked in the first place , don't understand why SA falls into such stupid bugCardano Outshines DOT, LINK, ETH in This Area: DetailsRobert Kiyosaki Names Profitable Asset That May Spike Soon, BTC Weekly Chart Signals Possible Breakout to $40,000, SHIB Lead Teases 'Secret' AI Initiatives: Crypto News Digest by U.Today
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