Banana Gun Hack Drains $3M from Crypto Traders, Exposes Vulnerabilities in Telegram-Based Trading Bot

Banana Gun, a Telegram-based trading bot, has confirmed an attack which drained $3 million from the wallets of its crypto traders. The Banana Gun hack highlighted vulnerabilities in crypto trading bots and emphasized the importance of bolstering security to protect users from future breaches.

In a detailed post-mortem, Banana Gun revealed that 11 attackers exploited a vulnerability in the system, leading to unauthorized transfers of Ether (ETH) from users’ wallets.

Despite the significant loss, Banana Gun has promised to refund the full $3 million from its treasury. The Banana Gun hack also triggered a temporary shutdown of the Ethereum Virtual Machine (EVM) and Solana bots as a precautionary measure.

What Went Wrong Inside The Banana Gun Hack

On September 19, Banana Gun users began reporting unusual activity in their crypto wallets. Unauthorized outbound transfers raised alarm bells, forcing Banana Gun to act swiftly to mitigate further damage.

The Banana Gun hack initially seemed to impact 36 users, but a subsequent investigation revealed that 11 experienced traders were the primary victims, losing a total of $3 million in the attack.

Unlike typical hacks, which often target novice traders, this attack zeroed in on seasoned crypto veterans. The hacker used a manual method to drain ETH from wallets while the Banana Gun bot was actively running. The precise nature of the attack suggested a targeted breach of a Telegram message oracle, a critical part of the bot’s infrastructure.

In response to the Banana Gun hack, the bot’s developers issued the following statement: “A total of 11 users were affected, with $3 million drained. All impacted users will be fully refunded from the Banana Gun treasury, with no tokens being sold for reimbursements.”

To prevent future incidents like the Banana Gun hack, the development team quickly moved to patch the vulnerabilities and enhance the system’s security measures. The primary vulnerability lay within the Telegram message oracle, a component that allowed the hacker to exploit the bot’s real-time communication with users’ wallets.

Banana Gun’s technical team has since implemented several security upgrades, including:

Two-hour transfer delay: This measure will give users enough time to detect suspicious activity and take preventive action.

Two-factor authentication (2FA): An additional layer of security requiring users to verify transfers, reducing the risk of unauthorized transactions.

Comprehensive system review: The team conducted a deep dive into their systems to detect any lingering vulnerabilities, ensuring that no future attack can replicate the Banana Gun hack.

“We have resumed operations of our EVM and Solana bots with enhanced security features to safeguard user funds,” said a spokesperson for Banana Gun.

How the Banana Gun Hack Impacted the Crypto Community

The Banana Gun hack has drawn widespread attention within the cryptocurrency community, not just for the scale of the loss but also for the nature of the attack. Crypto traders, particularly those relying on automated trading bots, are re-evaluating the security of these tools.

Crypto trading bots like Banana Gun are popular for automating trades, optimizing profits, and making real-time decisions based on market conditions. However, as the Banana Gun hack demonstrated, they can also be vulnerable to sophisticated attacks. In this case, the attackers were able to manipulate the bot’s communication with users, making it a unique and complex exploit.

Despite the setback, Banana Gun has maintained its reputation for transparency by quickly notifying the community and outlining a path to recovery. The decision to cover the $3 million loss without selling tokens for reimbursement is seen as a positive step, showing a commitment to user trust.

The Banana Gun hack isn’t an isolated case in the crypto space. Just two days after the Banana Gun incident, another crypto protocol, Shezmu, found itself at the mercy of a hacker.

Shezmu, a yield-leveraging protocol, lost $5 million when one of its stablecoin vaults was exploited. The hacker behind this attack, however, agreed to return most of the stolen funds after negotiating a white-hat bounty.

In a surprising turn of events, the Shezmu hacker returned 282.18 ETH to the protocol and refunded another 137 Wrapped Ether (WETH), leaving the crypto community hopeful that such hacks may not always end in complete disaster.

While it’s unclear whether Banana Gun’s attackers have been identified, the Banana Gun hack has once again opened up conversations about how crypto platforms and protocols negotiate with hackers.

While Banana Gun has resumed its operations and refunded affected users, the Banana Gun hack has left the crypto trading community more cautious. Automated trading bots, though powerful, must continually evolve to stay ahead of hackers.

The vulnerability exposed by the Banana Gun hack serves as a critical lesson for other platforms to prioritize security, particularly when large sums of cryptocurrency are at stake.

As the investigation into the Banana Gun hack continues, the development team remains focused on improving its systems and maintaining user trust. The hack may have exposed a significant vulnerability, but the response has been swift, transparent, and designed to prevent future losses.

For now, Banana Gun remains committed to restoring its platform’s integrity and ensuring that the Banana Gun hack becomes a turning point for better security and enhanced user protection.

The Banana Gun hack, though a significant setback, has demonstrated the platform’s resilience and commitment to user safety. By fully refunding the $3 million lost, Banana Gun is taking responsibility and working to regain the trust of its users.

With improved security measures now in place, the company is determined to prevent another Banana Gun hack and lead the charge in securing automated trading systems for crypto enthusiasts worldwide. Get more from The Bit Gazette.