In a shocking turn of events, Stars Arena on the Avalanche network fell victim to a devastating cyber attack earlier today, resulting in the loss of nearly all its locked funds, $3 million worth of $AVAX tokens.
The first signs of trouble surfaced in the wee hours of Saturday when a vigilant user, @0xLawliette (formerly known as @0xlilitch), raised concerns about a potential exploit.
Stars Arena's developers confirmed the devastating attack via a tweet shortly after, sending shockwaves through the #crypto community.
Stars Arena had drawn comparisons to Friend.Tech, a social app on Ethereum that rapidly gained popularity, amassing over 100,000 users within weeks of its August debut. Both platforms allowed users to purchase "keys" or "shares" of Twitter users, granting access to exclusive chatrooms with various privileges. These shares' values were incredibly volatile, leading some users to speculate on them akin to trading tokens and making profits from the price fluctuations.
It took until October for Stars Arena to ramp up its popularity. Ava Labs members, including founder Emin GĂŒn Sirer, had endorsed the app through multiple posts on Twitter, helping Stars Arena to reach wider masses.
Some users had even managed to rake in substantial profits, earning up to 1,000 AVAX in trading fees from the platform. The application's popularity had also contributed to a 6% spike in AVAX token prices at one point during the week. However, users that kept their profits on Stars Arena have now lost them, unless the developers came out with a fix to save the day.
