A smart contract exploit, combined with a DDoS attack, caused the total value of the system to drop to zero from nearly $1.3 million.
Stars Arena, a blockchain-based socialFi startup, lost about $3M of user funds in exploit, less than two weeks after its launch.
Stars Arena said in a tweet that their platform has been hit by a smart contract exploit, combined with a distributed denial of service attack. The attack drained the platform of its funds and resulted in the total value locked to zero from nearly $1.3M, DeFiLama said.
It's currently unknown who was responsible for the DDoS attack, and it's not possible to tell who did it. Users on the site are asked to stay vigilant and watch for updates from Stars Arena as they work on resolving the crisis.
Sirer downplayed the hack saying Stars Arena could easily recover the funds.
This incident serves as a reminder of the importance of security in the rapidly expanding world of decentralized finance platforms, as users' money is at stake, even when the app is a game.
In the future, Stars Arena is expected to unveil more details about the incident and their plans to restore the platform and make users whole.