{"investigation":{"slug":"arena-socialfi","entity_name":"Arena SocialFi","trust_score":32,"severity_base":null,"score_modifier":0,"confidence":0.78,"status":"published","content_type":"investigation","summary":"Arena SocialFi (originally Stars Arena, rebranded to The Arena) is an Avalanche-based SocialFi platform launched September 2023. The platform suffered a critical reentrancy exploit on October 7, 2023, losing approximately $2.9 million in AVAX; it subsequently recovered ~90% of stolen funds via a bounty agreement. Following the hack, the original team dissolved and the platform was acquired and rebuilt under new leadership, launching the ARENA token in 2024 and raising $2 million in pre-seed funding.","sections":[{"content":"Stars Arena launched on September 27, 2023, on the Avalanche C-Chain as a competitor to the Base-network social token platform friend.tech. The application allowed users to link their Twitter/X accounts and buy or sell tokenized 'tickets' (formerly called shares) representing social influence, with creators earning fees on each transaction. The platform was built by a pseudonymous developer known as 'theBuilder' (also identified by the handle hannesxda on X). Within days of launch, the platform drove a 186% surge in daily transactions on Avalanche and accumulated over 10,000 unique active wallets. At peak, some users reportedly earned over 1,000 AVAX in trading fees before the exploit.","heading":"Background and Launch","sources":[{"url":"https://cointelegraph.com/news/friend-tech-clone-stars-arena-drives-surge-avalanche-avax-token","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://decrypt.co/200242/stars-arena-social-token-friend-tech-avax","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.coingecko.com/learn/stars-arena-avalanche-socialfi-crypto","name":"coingecko.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Stars Arena suffered two exploits in rapid succession in early October 2023. The first exploit, disclosed on approximately October 5, 2023, allowed an attacker to extract approximately $2,000 in AVAX by exploiting a vulnerability in the platform's price function. Avalanche Labs founder Emin Gun Sirer publicly downplayed the initial breach, stating the issue had already been fixed. However, just two days later on October 7, 2023, a far more severe reentrancy attack drained 266,103 AVAX — then worth approximately $2.9 million — from the smart contract, leaving the contract with less than $1. Security firms including Halborn, CertiK, ImmunneBytes, and SlowMist analyzed the exploit. The reentrancy vulnerability allowed the attacker to manipulate the sellShares() function by inflating share weight before state updates occurred, enabling disproportionate AVAX returns. The original contract had not undergone a formal security audit prior to launch. The Stars Arena team confirmed the breach via X, stating 'There has been a major security breach with the smart contract. We're actively checking the issue. DO NOT deposit any funds.' The platform's website also suffered a distributed denial-of-service attack during the incident that hampered communications.","heading":"October 2023 Security Exploits","sources":[{"url":"https://www.coindesk.com/tech/2023/10/07/avalanche-social-app-stars-arena-drained-of-3m-in-avax-after-hack","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.halborn.com/blog/post/explained-the-stars-arena-hack-october-2023","name":"halborn.com","type":"other","credibility":3},{"url":"https://www.certik.com/resources/blog/stars-arena-incident-analysis","name":"certik.com","type":"other","credibility":3},{"url":"https://immunebytes.com/blog/stars-arena-hack-oct-7-2023-detailed-analysis/","name":"immunebytes.com","type":"other","credibility":3},{"url":"https://slowmist.medium.com/a-deep-dive-into-the-stars-arena-attack-765649d7fc6a","name":"slowmist.medium.com","type":"other","credibility":3},{"url":"https://cryptoslate.com/avalanche-project-stars-arena-suffers-2-9m-exploit-leaving-smart-contract-with-just-0-051/","name":"cryptoslate.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the October 7 exploit, Stars Arena offered a 10% bounty (approximately $257,000 plus 1,000 AVAX) to the attacker in exchange for the return of stolen funds. By October 11-12, 2023, the platform announced it had 'reached an agreement with the individual responsible for the recent security breach' and recovered approximately 90% of the 266,000 AVAX stolen. The team also developed a new smart contract and engaged Paladin Blockchain Security to conduct a post-exploit audit. The platform secured external funding to cover the remaining ~10% shortfall before reopening. CoinDesk reported on both the exploit and the recovery process.","heading":"Fund Recovery and Post-Exploit Response","sources":[{"url":"https://www.coindesk.com/markets/2023/10/11/stars-arena-exploiter-i-want-to-cooperate","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/stars-arena-recovers-stolen-funds-after-offering-bounty-exploit","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/stars-arena-secures-funds-to-plug-exploit","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://medium.com/avascan/from-exploit-to-recovery-unpacking-the-stars-arena-hack-07d8fb439367","name":"medium.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In the weeks following the exploit, the original Stars Arena team disintegrated. The CEO, operating pseudonymously under the handle 'Chill Pill,' resigned from the project in approximately November 2023. In a separate announcement, a team member known as 'Kook' publicly resigned citing 'serious issues with management and direction for some time.' The Block reported on the sequential departures. The original anonymous founding developer 'theBuilder' also exited the project. The platform was subsequently acquired by a new team, which undertook a full rebuild.","heading":"Leadership Collapse and Team Dissolution","sources":[{"url":"https://cryptopotato.com/the-ceo-of-avalanche-based-web3-social-platform-stars-arena-steps-down/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/260100/socialfi-platform-stars-arena-loses-another-team-member-after-ceo-steps-down","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the acquisition in November 2023, the platform was rebuilt under a new team led by CEO Jason Desimone and COO Phillip Liu Jr., rebranding as 'The Arena' (arena.social) in early 2024. The new team reported paying out over $6 million in AVAX to content creators within the first year of operation and growing to over 200,000 registered users. In October 2024, The Arena secured $2 million in pre-seed funding, announced in a press release on the Avalanche Foundation blog. The platform introduced a native ARENA token in 2024 with a total supply of 10 billion tokens, distributing 31% as airdrop rewards to early users based on a points system (1 point = 69 ARENA). Only 15% of airdrop tokens unlocked at launch, with the remaining 85% vesting monthly over one year.","heading":"Rebranding and New Team (The Arena)","sources":[{"url":"https://www.avax.network/about/blog/the-arenas-comeback-socialfi-app-on-avalanche-secures-2m-pre-seed-funding-and-plans-mainstream-expansion","name":"avax.network","type":"other","credibility":3},{"url":"https://decrypt.co/232900/the-next-friend-tech-avalanches-arena-sets-token-airdrop-plans","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.theblock.co/post/385963/jason-desimone-on-the-arenas-revival-and-the-future-of-socialfi","name":"theblock.co","type":"other","credibility":3}],"severity":"medium"},{"content":"In approximately December 2024, The Arena's official X account was compromised as part of a broader coordinated phishing campaign. On-chain investigator ZachXBT reported that a threat actor breached over 15 high-profile X accounts — including Kick, Cursor, Alex Blania, The Arena, and Brett — by sending phishing emails impersonating the X team with fake copyright infringement notices. The compromised accounts were used to promote fraudulent meme coin schemes, collectively netting the attacker approximately $500,000. ZachXBT identified that all account takeovers were linked through a single deployer address. In this incident, The Arena was a victim of the account compromise rather than an actor in the fraud.","heading":"X Account Compromise (December 2024)","sources":[{"url":"https://cryptobriefing.com/compromised-x-accounts-meme-coin-scam/","name":"cryptobriefing.com","type":"other","credibility":3},{"url":"https://cryptonews.com/news/scammers-steal-500k-via-x-account-breaches-and-meme-coin-scams-zachxbt/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://forklog.com/en/hacker-profits-500000-from-x-account-crypto-scam/","name":"forklog.com","type":"other","credibility":3}],"severity":"medium"},{"content":"The ARENA token launched in 2024 and reached an alleged all-time high of approximately $0.027 on or around June 2025. As of reporting in late 2025, the token had declined approximately 96% from its all-time high, trading around $0.00089. The token had approximately 38,810 holders as of October 2024, creating concentration risk where a small number of large wallets hold a significant share of supply. Community criticism has focused on a disconnect between platform growth metrics and token price performance. Announced token buyback programs have reportedly been delayed without implementation details. The Arena launched multichain expansions including Monad Chain integration in November 2025, and introduced Google and Apple sign-in options to lower onboarding friction.","heading":"Token Performance and Market Concerns","sources":[{"url":"https://www.coingecko.com/en/coins/the-arena","name":"coingecko.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/currencies/the-arena/","name":"coinmarketcap.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/cmc-ai/the-arena/latest-updates/","name":"coinmarketcap.com","type":"other","credibility":3}],"severity":"medium"},{"content":"The original Stars Arena smart contract was deployed without a formal security audit, a fact widely cited by security researchers including Halborn and CertiK following the October 2023 exploit. Post-exploit, the new contract underwent an audit by Paladin Blockchain Security prior to relaunch. The rebuilt platform under The Arena brand has not been publicly linked to further contract exploits as of available reporting. The absence of a pre-launch audit on the original contract is considered a contributing factor to the severity of the 2023 exploit.","heading":"Audit and Security Posture","sources":[{"url":"https://www.halborn.com/blog/post/explained-the-stars-arena-hack-october-2023","name":"halborn.com","type":"other","credibility":3},{"url":"https://www.certik.com/resources/blog/stars-arena-incident-analysis","name":"certik.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/stars-arena-secures-funds-to-plug-exploit","name":"cointelegraph.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2023-09-27","event":"Stars Arena launches on Avalanche C-Chain as a friend.tech competitor, built by pseudonymous developer 'theBuilder'.","source":""},{"date":"2023-10-05","event":"First exploit: attacker extracts approximately $2,000 in AVAX via a price function vulnerability. Avalanche Labs founder Emin Gun Sirer downplays the issue publicly.","source":""},{"date":"2023-10-07","event":"Second exploit: reentrancy attack drains 266,103 AVAX (~$2.9 million) from the Stars Arena smart contract, leaving it with less than $1. Team announces breach and halts deposits.","source":""},{"date":"2023-10-11","event":"Stars Arena announces 90% fund recovery after paying the exploiter a 10% bounty (~$257,000 plus 1,000 AVAX). New smart contract development begins with Paladin Security audit.","source":""},{"date":"2023-11","event":"Stars Arena CEO 'Chill Pill' resigns. Team member 'Kook' also departs citing management issues. Platform is acquired by a new team.","source":"","date_original":"2023-11-01"},{"date":"2024","event":"Platform relaunches as 'The Arena' under new CEO Jason Desimone and COO Phillip Liu Jr., with a rebuilt smart contract and updated product.","source":"","date_original":"2024-01-01"},{"date":"2024-09","event":"The Arena announces ARENA token launch with 10 billion total supply and airdrop for existing users based on accumulated platform points.","source":"","date_original":"2024-09-01"},{"date":"2024-10-15","event":"The Arena secures $2 million in pre-seed funding, announced via Avalanche Foundation blog.","source":""},{"date":"2024-12","event":"The Arena's X account is compromised in a coordinated phishing campaign. ZachXBT reports the attacker breached 15+ X accounts and netted ~$500,000 via meme coin scams using the hijacked accounts.","source":"","date_original":"2024-12-01"},{"date":"2025-06-09","event":"ARENA token reaches alleged all-time high of approximately $0.027.","source":""},{"date":"2025-11-24","event":"The Arena announces Monad Chain integration and Google/Apple sign-in support as part of V2 multichain expansion.","source":""},{"date":"2026-05-27","event":"ARENA token trading at approximately $0.00089, down approximately 96% from all-time high.","source":""}],"sources_used":[{"url":"https://cointelegraph.com/news/friend-tech-clone-stars-arena-drives-surge-avalanche-avax-token","name":"cointelegraph.com","type":"other","archive_url":"https://web.archive.org/web/20260829130722/https://cointelegraph.com/news/friend-tech-clone-stars-arena-drives-surge-avalanche-avax-token","credibility":3,"archive_timestamp":"2026-08-29T13:07:22+00:00"},{"url":"https://decrypt.co/200242/stars-arena-social-token-friend-tech-avax","name":"decrypt.co","type":"other","archive_url":"http://web.archive.org/web/20260510043511/https://decrypt.co/200242/stars-arena-social-token-friend-tech-avax","credibility":3,"archive_timestamp":"2026-05-10T04:35:11+00:00"},{"url":"https://www.coingecko.com/learn/stars-arena-avalanche-socialfi-crypto","name":"coingecko.com","type":"other","archive_url":"http://web.archive.org/web/20251017053836/https://www.coingecko.com/learn/stars-arena-avalanche-socialfi-crypto","credibility":3,"archive_timestamp":"2025-10-17T05:38:36+00:00"},{"url":"https://www.coindesk.com/tech/2023/10/07/avalanche-social-app-stars-arena-drained-of-3m-in-avax-after-hack","name":"coindesk.com","type":"other","archive_url":"http://web.archive.org/web/20260725154510/https://www.coindesk.com/tech/2023/10/07/avalanche-social-app-stars-arena-drained-of-3m-in-avax-after-hack","credibility":3,"archive_timestamp":"2026-07-25T15:45:10+00:00"},{"url":"https://www.halborn.com/blog/post/explained-the-stars-arena-hack-october-2023","name":"halborn.com","type":"other","archive_url":"http://web.archive.org/web/20260516231317/https://www.halborn.com/blog/post/explained-the-stars-arena-hack-october-2023","credibility":3,"archive_timestamp":"2026-05-16T23:13:17+00:00"},{"url":"https://www.certik.com/resources/blog/stars-arena-incident-analysis","name":"certik.com","type":"other","archive_url":"https://web.archive.org/web/20260830045424/https://www.certik.com/blog/stars-arena-incident-analysis","credibility":3,"archive_timestamp":"2026-08-30T04:54:24+00:00"},{"url":"https://immunebytes.com/blog/stars-arena-hack-oct-7-2023-detailed-analysis/","name":"immunebytes.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://slowmist.medium.com/a-deep-dive-into-the-stars-arena-attack-765649d7fc6a","name":"slowmist.medium.com","type":"other","archive_url":"http://web.archive.org/web/20251113092751/https://slowmist.medium.com/a-deep-dive-into-the-stars-arena-attack-765649d7fc6a","credibility":3,"archive_timestamp":"2025-11-13T09:27:51+00:00"},{"url":"https://cryptoslate.com/avalanche-project-stars-arena-suffers-2-9m-exploit-leaving-smart-contract-with-just-0-051/","name":"cryptoslate.com","type":"other","archive_url":"http://web.archive.org/web/20260724223127/https://cryptoslate.com/avalanche-project-stars-arena-suffers-2-9m-exploit-leaving-smart-contract-with-just-0-051/","credibility":3,"archive_timestamp":"2026-07-24T22:31:27+00:00"},{"url":"https://www.coindesk.com/markets/2023/10/11/stars-arena-exploiter-i-want-to-cooperate","name":"coindesk.com","type":"other","archive_url":"http://web.archive.org/web/20260725154427/https://www.coindesk.com/markets/2023/10/11/stars-arena-exploiter-i-want-to-cooperate","credibility":3,"archive_timestamp":"2026-07-25T15:44:27+00:00"},{"url":"https://cointelegraph.com/news/stars-arena-recovers-stolen-funds-after-offering-bounty-exploit","name":"cointelegraph.com","type":"other","archive_url":"https://web.archive.org/web/20260830041009/https://cointelegraph.com/news/stars-arena-recovers-stolen-funds-after-offering-bounty-exploit","credibility":3,"archive_timestamp":"2026-08-30T04:10:09+00:00"},{"url":"https://cointelegraph.com/news/stars-arena-secures-funds-to-plug-exploit","name":"cointelegraph.com","type":"other","archive_url":"https://web.archive.org/web/20260829234411/https://cointelegraph.com/news/stars-arena-secures-funds-to-plug-exploit","credibility":3,"archive_timestamp":"2026-08-29T23:44:11+00:00"},{"url":"https://medium.com/avascan/from-exploit-to-recovery-unpacking-the-stars-arena-hack-07d8fb439367","name":"medium.com","type":"other","archive_url":"http://web.archive.org/web/20251126142747/https://medium.com/avascan/from-exploit-to-recovery-unpacking-the-stars-arena-hack-07d8fb439367","credibility":3,"archive_timestamp":"2025-11-26T14:27:47+00:00"},{"url":"https://cryptopotato.com/the-ceo-of-avalanche-based-web3-social-platform-stars-arena-steps-down/","name":"cryptopotato.com","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://www.theblock.co/post/260100/socialfi-platform-stars-arena-loses-another-team-member-after-ceo-steps-down","name":"theblock.co","type":"other","archive_url":"http://web.archive.org/web/20251130011858/https://www.theblock.co/post/260100/socialfi-platform-stars-arena-loses-another-team-member-after-ceo-steps-down","credibility":3,"archive_timestamp":"2025-11-30T01:18:58+00:00"},{"url":"https://www.avax.network/about/blog/the-arenas-comeback-social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