Banana Gun Commits to Refund $3 Million Following Wallet Exploit

Banana Gun Commits to Refund $3 Million Following Wallet Exploit

Banana Gun has pledged to reimburse 11 users affected by a recent exploit that resulted in $3 million being stolen from their wallets. The team announced on social media that all impacted users would receive full refunds from the Banana Gun treasury, clarifying that no tokens would be sold to cover these reimbursements.

As a prominent Telegram-based trading bot, Banana Gun allows users to execute on-chain transactions and seize opportunities during upcoming token launches. The platform has generated over $6.3 billion in trading volume from nearly 279,000 users.

The security breach was first reported last Thursday, prompting Banana Gun to confirm that several users had experienced "unauthorized transfers" from their wallets. In response, the team temporarily disabled its Ethereum Virtual Machine and Solana bot, assuring users that its back-end systems remained secure.

Initially, the project indicated that fewer than 10 users were affected and suggested that the unauthorized transfers might have resulted from a front-end vulnerability. However, it was later confirmed that 11 users were impacted, specifically targeting experienced traders and known figures in the crypto space.

After a comprehensive investigation by both the Banana Gun development team and external experts, a potential vulnerability in the Telegram message oracle used by the platform was identified as a possible cause of the exploit.

Following the patching of the issue, the bots were brought back online last Friday, and no further attacks have been reported. The team has implemented several security measures, including a two-hour delay on transfers, the addition of two-factor authentication, and audits of both front-end and back-end systems to enhance security moving forward.