Recently, the Stars Arena Web3 social media application on Avalanche lost some funds due to a malicious attack. Stars Arena user Lilitch.eth discovered the vulnerability on October 5 and announced it on X, saying the damage exceeded $1 million. The Stars Arena team confirmed the attack, calling it a "war" against the app, but said the damage was only about $2,000 and that the vulnerability had been patched.

Stars Arena is similar to Friend.tech in that it allows users to purchase tokenized assets issued by content creators. Avalanche has seen a surge in activity since the launch of Stars Arena, with the network’s daily transaction volume increasing by more than 186% on October 3rd and 4th. However, Lilitch.eth blamed the developers of Stars Arena for being unable to produce a working copy of Friend.tech, resulting in a loss of $1.1 million. Some users accused Lilitch.eth of spreading panic.

The Stars Arena team posted on X that "the bug has been fixed" and explained the incident in a Twitter space event. Lilitch.eth, for its part, denied that the attacker spent $1 in gas for $5, and said it now supports Stars Arena. Meanwhile, Friend.tech users are facing a wave of SIM swapping attacks, and the team has implemented the ability to remove login methods to resolve the issue.