Stars Arena Moves Funds To New Wallet After $3 Million Hack

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• Social protocol Stars Arena has moved its remaining funds to a new wallet after $3 million was siphoned from the platform
• The new address is a gnosis safe multisig wallet that requires a nod from half of the registered signatures for a transaction to be successful
• Stars Arena said the move is part of a “security infrastructure overhaul”

Avalanche-based social protocol Stars Arena has shifted its remaining funds to a gnosis safe multi-signature (multi-sig) wallet after losing around $3 million in a hack. The new wallet accommodates six signatures and requires half of those signatures to sign a transaction for a withdrawal to be successful. The platform noted that the shift to a multi-sig wallet is part of a “security infrastructure overhaul” meant to enhance its security as it prepares for a full restoration of its activities, although the platform is yet to reveal more details of how it was hacked.

A Full Restoration with All the Funds

In an X (formerly Twitter) post, Stars Arena also disclosed that it has partially reopened the platform but still discourages users from depositing funds to the platform.

Update:

Funds have been moved from the original fee wallet to a new gnosis safe multisig with 3/6 signatures required under the control of all Stars Arena team members.

Gnosis Safe: 0xAc0388Fe24D65358f2fF063ebCbEfa321A2a091d

This is in conjunction with our security…

— Stars Arena (@starsarenacom) October 8, 2023

Since the hack was reported on October 7, the protocol has announced collaborations with blockchain security firm PaladinSec and software engineer Locrian to boost “the security infrastructure of [the] platform.”

We’re excited to announce our collaboration with @0xPaladinSec, a leading authority in blockchain security solutions.

This initiative reinforces our steadfast commitment to elevating the security infrastructure of our platform as recommended by key community leaders.

We’re… pic.twitter.com/sNS59YF5IZ

— Stars Arena (@starsarenacom) October 8, 2023

The Stars Arena team said that the platform will fully resume operations only after a full security audit and “with all the funds in full.” However, it didn’t give deadlines as to when these audits or funds will be available.

Stars Arena is a Scam?

Scanty details about the hack and what the team is doing about it have caused some in the crypto community to doubt the legitimacy of Stars Arena, convinced it’s a  scam. The hack comes a few days after scammers targeted users of a similar platform, Friend.tech, and stealing over $385K

Although Stars Arena has announced measures to improve its security, it’s unclear whether they are in contact with the hacker or how they plan to close the $3 million gap.