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Telegram crypto bot Banana Gun confirms $3M loss, says it will refund users

Telegram crypto bot Banana Gun confirms $3M loss, says it will refund users

  • Banana Gun confirmed a $3 million loss from a hack targeting experienced traders.
  • All affected users will receive full refunds without selling any tokens.
  • The company has implemented enhanced security measures to prevent future attacks.

The Telegram-based cryptocurrency trading bot Banana Gun has confirmed a $3 million loss due to a hacking incident that targeted its experienced user base.

The attack, which exploited a vulnerability within its trading system, has prompted Banana Gun to take immediate action to protect its users and restore trust. The company announced that all affected users would receive full refunds, demonstrating its commitment to customer support and security.

Details of the Banana Gun hack

On September 19, users of Banana Gun reported unauthorized transactions draining funds from their crypto wallets. Initially, the investigation indicated that around 36 users were affected, leading to a loss of nearly $2 million in Ether (ETH).

However, further analysis revealed that the total loss was much higher, with only 11 users ultimately affected and a total of $3 million drained.

This discrepancy highlights the complexity of the incident and the challenges in assessing the full scope of the attack.

In response to these alarming reports, Banana Gun swiftly disabled its Ethereum Virtual Machine (EVM) and Solana trading bots to prevent further unauthorized transactions. The company emphasized that its trading bots are designed to facilitate automated trades, often utilized by crypto traders to enhance their profitability.

Unlike typical hackers who target inexperienced investors, the attackers specifically targeted seasoned traders, allowing them to manually transfer ETH while the trading bots were active.

The hack exploited a vulnerability in a Telegram message oracle, which has raised concerns about the security of such platforms. This incident serves as a reminder of the importance of robust security measures in the rapidly evolving world of cryptocurrency trading.

Following the identification of the vulnerability, Banana Gun implemented a series of measures to fortify its security protocols.

Banana Gun commits to refund users

In a public statement, Banana Gun has announced that all impacted users would receive full refunds from the company’s treasury.

The firm clarified that no tokens would be sold to finance these…

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