Banana Gun Recovers from $3M Exploit with Full Refunds and New Security Upgrades

Sentiment Status: Neutral

Banana Gun disclosed that a vulnerability in its Telegram message oracle enabled attackers to drain the wallets of 11 users, prompting the platform to pause the bot to prevent further losses.

Banana Gun announced its commitment to compensate the victims of a $3 million exploit. The platform suffered a breach that affected 11 users. In response, the Banana Gun team promised that all impacted users would be fully refunded from the platform's treasury, guaranteeing no tokens would be sold to cover the losses.

Banana Gun revealed the exploit occurred due to a vulnerability in its Telegram message oracle. This allowed the attackers to manually drain the wallets of 11 users, many of whom are veteran crypto traders with a strong social media presence. The attack was deliberate and well-planned, as the victims had real-time notifications of unauthorized transfers from their wallets.

Banana Gun’s bots on Ethereum Virtual Machine (EVM) and Solana networks were affected, even if they operated on separate codebases.

Immediately after the breach, Banana Gun paused the bot services to prevent further losses. Now, the platform has applied several security updates to safeguard users going forward. A key measure is the introduction of a two-hour transfer delay, giving users more time to react to suspicious transactions. Additionally, Banana Gun added two-factor authentication (2FA) to strengthen the security of its transfers.

The team assured the community that the necessary updates had been made and that the bots were back online, with no restrictions aside from the transfer delay.

One of the most remarkable aspects of Banana Gun's response is the commitment to reimburse all 11 victims without selling any BANANA tokens. This helped restore confidence in the platform, leading to a 7% rise in the price of its native token, BANANA, which is currently trading at $40. The token saw a sharp recovery following the hack, with the community praising the team for its proactive approach to user protection.

Banana Gun, which launched its token through a whitelist-only presale in September 2023, became one of the top performers. In the last 30 days alone, it generated $2.4 million in revenue, securing its spot as the 19th highest earner in DeFi. 

Banana Gun has teamed up with the Web3 security firm Security Alliance. Together, they conducted a review of the platform's backend and frontend systems and switched to new servers to increase security. Additional testing and audits are planned to protect users further.

The attack on Banana Gun follows a trend of sophisticated hacks in the crypto space. With the new security protocols in place, Banana Gun is positioning itself as a more secure option for traders.