Stars Arena Recovers 90% of Stolen AVAX Tokens, Offering a 10% Bounty to Hacker

By 0xK2 10/12/23 3:31 AM

Stars Arena has announced that it has successfully recovered the vast majority of the crypto that was stolen during a recent exploit. The platform revealed that they were able to retrieve around 90% of the 266,000 Avalanche (AVAX) tokens worth approximately $3 million, which were pilfered on October 7th. This remarkable recovery comes after Stars Arena made an unusual agreement with the individual responsible for the security breach.

In a Twitter post made on October 11, Stars Arena informed their community of the significant development. They stated that the hacker, responsible for draining their smart contract and orchestrating the breach, has agreed to return the ill-gotten assets. However, the agreement wasn’t without its terms. As part of the deal, the hacker will receive a 10% bounty fee in AVAX tokens and an additional 1,000 AVAX as compensation for a loss incurred during a bridge incident.

The tweet read, “UPDATE: We have recovered approximately 90% of the lost funds. We reached an agreement with the individual responsible for the recent security breach.

The funds have been returned in exchange for a 10% bounty fee + 1000 AVAX that was lost in a bridge.

Total funds lost: 266,104 AVAX.

Funds returned: 239,493 AVAX in two transactions of 119,246 AVAX.

Bounty: 26,610 AVAX + 1000 AVAX = 27,610 AVAX.”

This unusual agreement marks a unique chapter in the world of cryptocurrency and Web3 platforms. While it is common for organizations to offer bounties to ethical hackers to find vulnerabilities and fix them, it’s far less common for stolen funds to be returned under such conditions.

The stolen AVAX tokens, which had a market value of $9.19 per token at the time of the theft, were part of a major security breach on Stars Arena’s smart contract. The breach sent shockwaves through the platform, leading to an immediate response from the company to mitigate the damage.

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