In a significant development for the cryptocurrency community, the Telegram-based trading bot Banana Gun has pledged full refunds amounting to $3 million for users impacted by a recent security breach. Following this announcement, the price of BANANA surged by over 7%, helping to recover losses incurred in the past week.
Refunds for Affected Users
The Banana Gun team confirmed that all 11 users affected by the hack will receive reimbursements directly from the Banana Gun Treasury. The exploit primarily targeted experienced crypto traders, with the attackers executing real-time manual transfers of Ethereum (ETH) from the victims’ wallets.
Security Measures Implemented
The breach was traced back to a vulnerability in the Telegram message oracle, prompting the Banana Gun team to act swiftly. They temporarily disabled the bot to prevent further losses and have since implemented enhanced security measures to safeguard user funds. After thorough updates, both the EVM and Solana versions of the bot have resumed operations, witnessing a resurgence in trading activity.
Details of the Attack
Investigations reveal that the attackers specifically aimed at seasoned traders, many of whom possessed a notable presence on social media. The exploit unfolded with attackers manually transferring ETH while users received simultaneous notifications from the trading bot. Despite the independent codebases of the EVM and Solana versions, both platforms were compromised.
Enhanced Security Protocols
In response to the attack, Banana Gun has taken decisive steps to fortify its systems:
Two-Hour Transfer Delay: A mandatory delay on all transfers has been instituted.
Two-Factor Authentication (2FA): 2FA has been introduced for added security during transfers.
Comprehensive System Review: Both back-end and front-end systems have undergone thorough evaluations.
New Server Deployment: The back end has been redeployed on secure servers.
Expert Collaboration: The investigation was conducted in partnership with Security Alliance, a prominent web3 security firm.
Upcoming initiatives will include penetration testing and further audits of both the web application and Telegram bots to ensure robust security measures.
Market Reaction
The announcement of full refunds has resulted in a 7% increase in BANANA’s price, pushing it past $39.00 and elevating its market capitalization to over $133.5 million. This recovery marks a significant rebound from recent losses experienced by the cryptocurrency.
As the crypto landscape continues to witness an uptick in hacking incidents, including high-profile breaches on various platforms, the Banana Gun team remains committed to safeguarding its users’ investments.
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