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The Chief Executive Officer of Stars Arena, a Web3 social platform based in Avalanche, resigns from their position.
Stars Arena announced that its CEO, Chill Pill, has resigned from his role, a decision that follows closely on the heels of a significant smart contract exploit affecting the decentralized social finance (SocialFi) application.
Currently, the protocol’s total value locked (TVL) is just over $300,000, marking a substantial decline from nearly $3 million prior to the hacking event.
Unknown Stars Arena CEO Resigns
Stars Arena shared the news of its CEO’s departure on X, indicating that the team is focused on restoring the trust of its community members. Chill Pill also posted about his resignation on Twitter, with neither Stars Arena nor Chill Pill providing explanations for this change.
In the aftermath of the announcement, many members of the crypto community on X expressed surprise at the existence of a CEO for Stars Arena, as the social application has not been transparent about its team, while others remarked that this resignation is one of the swiftest in the industry.
The SocialFi application was launched in late September and is modeled after the Ethereum-based Friend.tech. Stars Arena enables users to connect their X accounts to the platform while utilizing Avalanche’s native coin AVAX to purchase shares referred to as “tickets” from creators.
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Stars Arena experienced a surge in interest following its launch, leading to an increase in transactions on the Avalanche network. However, the protocol has faced multiple hacking incidents.
New TVL Nearly 90% Lower After Hack
The first exploit of Stars Arena resulted in a loss of $2,000, with the team assuring users that the vulnerability had been addressed. Nevertheless, just two days after the initial incident, the protocol suffered a second hack, which led to a more substantial theft.
As previously reported by CryptoPotato, the attackers drained the project’s TVL, stealing nearly $3 million and leaving only $0.5. At the time of the second attack, Avalanche CEO Gün Sirer appeared optimistic that the social app would swiftly recover from the incident. Stars Arena later stated that the platform secured funding to offset the losses incurred.
In another update, the project disclosed that the individual responsible for the hack 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.
As of this writing, Stars Arena’s TVL is reported to be $310,468, according to DefiLlama, representing an almost 90% decrease from $2.78 million prior to the second exploit.
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