BANANA Surges 7% as Banana Gun Issues Full Refund to Hack Victims

The hack mostly targeted seasoned cryptocurrency traders with substantial social media followings.

Key Notes

Banana Gun refunded all 11 users affected by a $3 million hack, restoring confidence in the platform.New measures, including a two-hour transfer delay and 2FA, were implemented to prevent future exploits.Following the refund announcement, BANANA tokens rose over 7%, recovering most losses from the hack.

Last week, Telegram-based trading bot Banana Gun experienced a significant hack that led to nearly $3 million in losses for its users. In response, the Banana Gun team has announced that all 11 affected users will receive full compensation from the project’s Treasury. This news has driven a sharp rise in the price of BANANA, which surged by about 7%, now trading at over $37.

Hack-Targeted Experienced Crypto Traders

The hack mostly targeted seasoned cryptocurrency traders with huge social media followings. During their interactions with the bot, victims claimed to have seen Ethereum transfers from their wallets happening in real time. Despite having different codebases, the bot’s Solana and Ethereum Virtual Machine (EVM) versions were both compromised in the attack.

The Banana Gun team acted swiftly to deactivate the bot. After the bot was offline, no more losses were recorded. The attackers had exploited a vulnerability in the Telegram message oracle, which allowed them to initiate manual transfers from users’ wallets. During the process, users received real-time notifications from the bot.

Security Measures Implemented to Prevent Future Attacks

After conducting a detailed investigation with the help of external security experts, Banana Gun identified the root cause of the breach and immediately took steps to address the issue. In order to safeguard users moving ahead, the team has put in place a number of new security measures.

These include the implementation of two-factor authentication (2FA) for all transfers and a two-hour transfer delay for transactions. Additionally, the Banana Gun team meticulously examined and improved both its front-end and back-end systems. They further improved security by redeploying the bot’s infrastructure on fresh servers as a precaution. Since then, trading has been restored on the site, and the Solana and EVM bots are back active.

Banana Gun’s investigation was conducted in collaboration with Security Alliance, a leading Web3 security firm. The team also plans to perform additional penetration testing and security audits of their systems to ensure the platform is more resilient to future attacks.

BANANA Price Rises as Confidence Returns

The announcement of full refunds for the victims has helped restore investor confidence, leading to a sharp increase in the value of BANANA tokens. Over the past 24 hours, BANANA has gained over 7%, recovering much of the ground lost following the hack. The token’s market capitalization has now crossed $130 million.

While the hack was a setback for Banana Gun, the team’s swift response, compensation for users, and new security measures have been praised by the community. As crypto hacks become more frequent across the industry, Banana Gun’s handling of the situation has reassured its users and bolstered the project’s reputation.

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