Stars Arena, a Web3 social media app on Avalanche, has experienced a malicious attack resulting in the loss of funds. The attack was discovered by a user named Lilitch.eth, who claimed that over $1 million was lost. However, the Stars Arena team confirmed that the actual losses were around $2,000 and that the exploit has been patched to prevent further damage. They described the attack as a “war” against the app and warned users of malicious actors trying to steal their money. Stars Arena allows users to buy tokenized assets issued by content creators, similar to Friend.tech. Since the launch of Stars Arena, Avalanche has seen a significant increase in daily transactions. Some users accused Lilitch.eth of spreading fear and doubt, while others defended the team, stating that the exploit had been fixed and attackers were spending more in gas than they were extracting. The Stars Arena team held a Twitter Spaces event to address the situation and clarified that only a small amount of money was lost. Lilitch.eth denied waging war against the app and expressed support now that the exploit has been patched. Friend.tech users have also been facing SIM-swap attacks, prompting the team to implement measures to combat the issue.
