Avalanche-based Web3 social media app Stars Arena had been drained of approximately $2.9 million in an Oct. 7 security breach in its smart contract.

The attack has caused the project’s amount of value locked in its smart contract to fall to $0.47, data from DefiLlama shows.

Blockchain security firm SlowMist monitored the hacker’s activity. They reported that the hacker transferred 266,103 AVAX from Stars Arena and eventually sent the funds to the Fixed Float exchange.

Stars Arena confirmed the breach in its smart contract on X (formerly Twitter) and said it is “actively checking the issue.” It urged its users to avoid depositing any funds and that it would share any updates.

It also apologized for the incident and that its site was under a distributed denial-of-service (DDoS) attack, promising to recover users’ funds.

In a later update, the company said it had secured the resources “to close the gap caused by the exploit.”

“Additionally, a special white hat development team is coming in to rapidly review the security of the platform,” it added.

In an Oct. 7 X Spaces, the Stars Arena team emphasized that ensuring security is “watertight” will take time before relaunching the smart contract. Currently, there is no clear timeline as to when the project will resume, but the team has assured that it will happen “very soon.”

The latest incident was not the first time Stars Arena experienced an exploit this month. On Oct. 5, the Web3 social media app reportedly lost $1 million to a malicious attack.

That exploit has since been fixed, according to the project, which claimed that the attack was part of an ongoing “war” against the “little guy.”

After facing criticism from the crypto community on X over the platform’s security, the Stars Arena team called out “coordinated fud” and vowed to move forward.

Similar to Friend.tech, Stars Arena allows users to buy “shares,” tokenized assets issued by content creators. The issuers can grant token owners access to exclusive content or other perks.