Originally published on: September 25, 2024
The recent hack on the Telegram-based cryptocurrency trading bot, Banana Gun, resulted in a $3 million loss for users, leading the platform to take swift action in refunding those affected by the breach. The hack, orchestrated by 11 attackers, left seasoned crypto traders vulnerable to unauthorized transfers from their wallets while utilizing the trading bot’s services.
Following reports of unauthorized outbound transfers on Sept. 19, Banana Gun decided to temporarily deactivate its Ethereum Virtual Machine (EVM) and Solana bots to prevent further losses. An initial investigation revealed that 36 users lost nearly $2 million worth of Ether, but a post-mortem report exposed a higher total loss with fewer victims, indicating a total of $3 million drained by the hackers.
In response to the breach, Banana Gun has pledged to fully refund all impacted users from its treasury, without resorting to selling tokens for reimbursements. The attacker’s ability to manually transfer ETH from users’ wallets during bot usage raised concerns about a vulnerability within a Telegram message oracle, prompting Banana Gun to enhance its security protocols.
To prevent future incidents, Banana Gun has implemented measures such as a two-hour transfer delay, two-factor authentication for transfers, and a comprehensive system review. These steps aim to fortify the platform against potential vulnerabilities and safeguard users’ assets from malicious attacks.
Meanwhile, in a separate incident, a hacker that exploited yield protocol Shezmu returned the majority of the stolen funds after accepting a white hat bounty. Shezmu discovered an exploit in its ShezmuUSD (ShezUSD) stablecoin vault, leading to the theft of $5 million. Prompted by a request for the return of 90% of the stolen funds, the hacker initiated the refunds within 24 hours, demonstrating a willingness to rectify the situation.
As the crypto landscape continues to face security challenges, proactive measures and collaborations between platforms and white hat hackers reinforce the industry’s commitment to protecting user funds and maintaining trust in innovative technologies.
