Stars Arena, a cutting-edge on-chain social application fortified on the illustrious Avalanche blockchain, recently fell prey to a massive $2.9 million cyber attack. At the heart of the issue was an exploit within its smart contract, enabling the hackers to siphon off substantial funds. Nevertheless, the Stars Arena team has swiftly taken measures to ensure the funds were secured, intending to undertake an exclusive security audit of the entire platform.
A Deep Dive into the $2.9 Million Cyber Attack on Stars Arena
The intricately designed, socially driven platform of Stars Arena, built on the Avalanche blockchain, broadcasted the distressing news of a $2.9 million cyber heist. The core concern stemmed from an infiltration of its smart contracts system which transpired on an unsuspecting Saturday. The Stars Arena team, via their comprehensive posts on X (formerly Twitter), acknowledged the robust security breach. They consequentially entreated users to suspend deposit commands while their specialists actively scrutinized the problem.
Groundbreaking blockchain security and data analytics corporation, Peckshield, observed that the violation was an outcome of a reentrancy exploit on the Stars Arena's shares contract. The loophole allowed the malefactors to liquidate assets on the site at a price towering above the standard market value.
Peckshield's Analysis and Detection of the Exploit
Through their comprehensive investigation, Peckshield was able to draw attention to the fact that "The reentrancy has been manipulated to update the weight concurrently with the issuance of the share/ticket, inflating the selling rate of a single share up to 274k $AVAX."
Prior to this unfortunate incident, the platform had declared triumph over plugging another potential exploit. The Stars Arena team had released statements citing the threat of being "under the sights of malevolent characters within the blockchain universe, eager to rob your fortunes."
The Aftermath and Steps towards Restoration
The Ava Labs founder and CEO, Emin Gün Sirer, shed an optimistic light on the exploit. He believed in the strong relationships formed by the Stars Arena’s team and their proven product prowess in the market. Gün Sirer expressed his confidence on the team's ability to retrieve the stolen funds and rectify the glitch in due course.
Subsequently, Stars Arena declared that they had secured the necessary funds to compensate the users. They have also engaged a proficient white hat development team to fast-track the security review process of their platform.
Moreover, the platform has assured its users of reopening with the restored funds following an extensive security audit, set to commence "very soon." The exact timeline for this recovery, however, has yet to be disclosed. The fallout following the Stars Arena’s $2.9 million reentrancy exploit serves as a bold reminder of the ubiquitous presence of cyber threats in today’s digital landscape.
Frequently Asked Questions
Do You Need to Open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items have been around for thousands of years and represent real value that cannot be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
Remember that you will not see any returns unless you are retired if you open an Account. Remember the future.
How does a gold IRA work?
You can purchase physical gold bullion coins anytime. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
You will pay taxes when you withdraw your gold from your IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It is best to not take out more than 50% annually of your total IRA assets. You could end up with severe financial consequences.
Can I hold a gold ETF in a Roth IRA?
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows contributions from both employee and employer. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs do not have to be taxable
How much should you have of gold in your portfolio
The amount of capital that you require will determine how much money you can make. For a small start, $5k to $10k is a good range. Then as you grow, you could move into an office space and rent out desks, etc. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
You also need to consider what type of business you will run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
Tips for Investing Gold
One of the most sought-after investment strategies is investing in gold. There are many benefits to investing in gold. There are many options for investing in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. Otherwise, you can look into buying gold from abroad.
- The second is to decide which kind of gold coin it is you want. You can choose between yellow gold and white gold as well as rose gold.
- Thirdly, it is important to take into account the gold price. It is best to start small and work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversify your investments in stocks, bonds or real estate.
- Last but not least, remember that gold prices fluctuate frequently. You need to keep up with current trends.
By: Sergio Goschenko
Title: Unmasking the Stars Arena Hack: A $2.9 Million Security Breach
Sourced From: news.bitcoin.com/social-on-chain-app-stars-arena-suffers-2-9-million-hack-team-secures-funds-to-close-the-gap/
Published Date: Sun, 08 Oct 2023 20:30:36 +0000