CEO Resigns After Stars Arena’s Smart Contract Exploit
Stars Arena recently announced that their CEO, Chill Pill, has resigned from their position. This decision comes in the aftermath of a major smart contract exploit that occurred on the decentralized social finance (SocialFi) application about a month ago.
The total value locked (TVL) in the protocol currently stands at just over $300,000. This is a significant decrease from the TVL of nearly $3 million before the hacking incident.
Details Behind the CEO’s Departure
Stars Arena made the announcement about their CEO stepping down on X. They also stated that the team is committed to rebuilding the trust of community members. Chill Pill himself took to Twitter to confirm the news of his resignation. Neither Stars Arena nor Chill Pill have provided specific reasons for this development.
As of today, Chill Pill has stepped down from his role as CEO.
We will continue to take significant steps towards rebuilding trust with our community.
— Stars Arena (@starsarenacom) October 29, 2023
The news of the CEO’s departure surprised many members of the crypto community on X. Stars Arena has not been transparent about the team behind the project. Some also noted that this resignation is one of the quickest in the industry.
Significant Loss in Total Value Locked (TVL)
Stars Arena experienced its first exploit, resulting in a loss of $2000. The team assured users that they had fixed the vulnerability. However, just two days later, the protocol was hit by a second hack, leading to a much larger theft.
As previously reported, the attackers drained the platform’s TVL, stealing nearly $3 million and leaving just $0.5. Despite this setback, Avalanche CEO Gün Sirer expressed confidence in Stars Arena’s ability to recover quickly. The project later claimed to have received funding to cover the losses incurred.
In a recent update, Stars Arena revealed that the hacker responsible for the theft contacted the team and returned 90% of the stolen funds in exchange for a 10% bounty and an additional 1,000 AVAX lost in a bridge.
Currently, the TVL for Stars Arena is $310,468 according to DefiLlama. This represents an almost 90% drop from $2.78 million before the second exploit.
### News source: cryptopotato.com