New York, Wednesday, October 02, 2024 – Popular Telegram-based crypto trading bot Banana Gun has announced it will refund $3 million to 11 users affected by a recent hack.
The platform’s treasury will cover the losses without selling any tokens, a move that reassured the community and caused a 7% surge in the value of the platform’s BANANA token.
The hack, which targeted experienced crypto traders, occurred when users noticed unauthorized Ethereum (ETH) transfers from their wallets while interacting with Banana Gun’s bots.
Both the Ethereum Virtual Machine (EVM) and Solana versions of the bot were compromised. Banana Gun responded quickly by shutting down the bot and preventing further losses.
The team’s investigation, conducted with security firm Security Alliance, revealed that the attackers exploited a vulnerability in the Telegram message oracle to initiate manual ETH transfers from user wallets.
The attack appeared highly targeted, focusing on traders with significant social media presence.
To prevent future breaches, Banana Gun introduced several security enhancements, including a two-hour transfer delay and two-factor authentication (2FA) for all transactions. The platform also overhauled its backend systems and redeployed its infrastructure on new servers.
