BANANA Price Jumps 7% As Banana Gun Issues Full Refund to Hack Victims

Highlights

Banana Gun announced that all 11 affected users will receive full refunds from the Banana Gun Treasury.
The exploit primarily affected experienced crypto traders, with attackers manually transferring ETH from users' wallets.
The Banana Gun team patched a vulnerability in the Telegram message oracle and implemented new security measures.

Last week, victims of the Banana Gun hack lost a total of $3 million to exploiters. In the latest development, the team announced that it will issue a complete refund to all 11 victims, and pay them via its own Treasury. The announcement sent the BANANA price soaring up by 7% thereby recovering the last week’s losses.

Banana Gun Hackers Targeted Crypto Veterans

Details of the Banana Gun hack revealed that the attackers targeted crypto veterans with strong trading backgrounds or substantial social media presence. This further led to significant losses for the victims.

During the attack, users observed that the attackers manually transferred ETH from their wallets in real-time while receiving notifications from the Telegram trading bot. Despite having independent codebases, both the Ethereum Virtual Machine (EVM) and Solana versions of the Telegram-based bot were compromised. The team then quickly managed to shut down the bot, and no further attacks occurred after its deactivation.

However, the Banana Gun EVM and Solana bots are back online and trading activity has been bustling again on the platform. Here’s a look into some of the top crypto trading bots for 2024.

BANANA Price Surges 7% After Addressing Vulnerabilities

A detailed investigation into the hack along with the external security experts reveals that the hacker exploited a vulnerability in the Telegram message oracle, during the recent attract. This exploit led to the manual transfers of ETH from users’ wallets, leading to significant losses.

Thus, the manual nature of the transfers and the in-bot notifications users received during the attack were the root cause of the issue. After addressing the vulnerability the team has reactivated the bot by enhancing the security protocols.

To prevent future incidents, Banana Gun has introduced several mitigation measures:

Firstly, they have implemented a two-hour transfer delay.
They have also added Two-factor authentication (2FA) for transfers.
The team has thoroughly reviewed both back-end and front-end systems.
The back end has been redeployed on new servers.
The Telegram trading bot conducted the investigation in collaboration with Security Alliance, a leading web3 security firm.
Upcoming steps include penetration testing and additional audits of the web app and Telegram bots.

Following this announcement of the refund, the BANANA price jumped 7% moving past $39.00 and its market cap crossing $133.5 million. With this, it has regained most of the last week’s losses.

Crypto hacks have increased recently, especially on the X platform, with OpenAI executive accounts compromised recently.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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