Stars Arena Hacked of $3 Million 🏃

GM. This is Degen Scoop. It’s Monday, here’s the scoop:

• Stars Arena Hacked of $3 Million 🏃

• Friend.tech The Fee Machine 🏅

• Huobi Reclaims $8M From Hack 💰

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Stars Arena, Friend.tech Fork on Avalanche, Hacked of $3M Worth of $AVAX

Stars Arena, another friend.tech fork this time on Avalanche, faced a significant security breach resulting in millions of lost funds. The platform suffered a smart contract attack, with hackers transferring 266,103 AVAX (~$2.85 million). Stars Arena apologized, acknowledged a DDOS attack, and assured users they were working on a solution to recover funds. They also mentioned a white hat development team would conduct a security audit before reopening the contract.

The security breach occurred amid a surge in transactions on Stars Arena, with a 248% increase in volume 24 hours before the attack. This incident follows an earlier exploit in the platform, where hackers took $2,000. The security breach comes in the wake of the sim swaps on Friend.tech that happened last week.

Friend.tech Generated Over $20M in Revenue in Just Two Months

Since its launch in August, FriendTech, the social protocol has been the talk of crypto with few other novelties being created. Since its inception, the protocol has generated nearly $20 million in revenue. FriendTech is the largest revenue-generating app on Base and the second-largest in the overall crypto space; many copies have spawned given its success as evidence by our lead story of the day. Despite a drop in unique users since late September, FriendTech remains the top project in the SocialFi niche.

However, security challenges have arisen, with incidents of SIM swap attacks on users. Despite these challenges, the project's founder, '0xRacer,' has separately earned over $440,000 from the platform, according to on-chain data. Regardless of how you feel about the app, it has managed to bring in non-crypto participants such as OnlyFans creators and other large names such as FaZe Banks which will continue to offer a new way for KOLs to monetize.

Huobi Manages To Obtain $8M of ETH Lost in September Hack

Huobi has successfully recovered $8 million in stolen ETH after negotiating with the hacker responsible for the theft. This hack of Huobi occurred roughly two weeks ago as we discussed that here in the newsletter that day. Justin Sun announced the recovery on Twitter (shown below) and mentioned that the hacker made the "right choice" by accepting HTX's offer. The exchange initially disclosed the hack on September 25, when a hot wallet was compromised, resulting in the loss of 5,000 ETH.

Sun had assured customers that it was a relatively small sum compared to the exchange's $3 billion in assets and promised that users would be whole whether the funds were retrieved or not. As part of the recovery, Huobi offered a 5% "white-hat reward" to encourage the hacker to return the funds, ultimately reaching an agreement and paying a bonus of 250 ETH. The hacker still earned themselves nearly a half-mil payday so it’s likely that all parties are content with the end result.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.