Kategorie: Crypto Markets

• Banana Gun confirmed a $3 million loss from a hack targeting experienced traders.
• All affected users will receive full refunds without selling any tokens.
• The company has implemented enhanced security measures to prevent future attacks.

The Telegram-based cryptocurrency trading bot Banana Gun has confirmed a $3 million loss due to a hacking incident that targeted its experienced user base.

The attack, which exploited a vulnerability within its trading system, has prompted Banana Gun to take immediate action to protect its users and restore trust. The company announced that all affected users would receive full refunds, demonstrating its commitment to customer support and security.

Details of the Banana Gun hack

On September 19, users of Banana Gun reported unauthorized transactions draining funds from their crypto wallets. Initially, the investigation indicated that around 36 users were affected, leading to a loss of nearly $2 million in Ether (ETH).

However, further analysis revealed that the total loss was much higher, with only 11 users ultimately affected and a total of $3 million drained.

This discrepancy highlights the complexity of the incident and the challenges in assessing the full scope of the attack.

In response to these alarming reports, Banana Gun swiftly disabled its Ethereum Virtual Machine (EVM) and Solana trading bots to prevent further unauthorized transactions. The company emphasized that its trading bots are designed to facilitate automated trades, often utilized by crypto traders to enhance their profitability.

Unlike typical hackers who target inexperienced investors, the attackers specifically targeted seasoned traders, allowing them to manually transfer ETH while the trading bots were active.

The hack exploited a vulnerability in a Telegram message oracle, which has raised concerns about the security of such platforms. This incident serves as a reminder of the importance of robust security measures in the rapidly evolving world of cryptocurrency trading.

Following the identification of the vulnerability, Banana Gun implemented a series of measures to fortify its security protocols.

Banana Gun commits to refund users

In a public statement, Banana Gun has announced that all impacted users would receive full refunds from the company’s treasury.

The firm clarified that no tokens would be sold to finance these reimbursements, indicating a strong commitment to restoring user trust.

This move reflects the company’s understanding of the financial impact the incident has had on its users and its desire to maintain a loyal customer base in a highly competitive market.

The announcement of refunds is particularly significant given the increasing scrutiny and regulatory focus on the cryptocurrency sector. By proactively addressing the situation and compensating affected users, Banana Gun aims to distinguish itself as a responsible player in the market.

Enhanced security measures

In the wake of the hack, Banana Gun has instituted several enhanced security measures to prevent similar incidents in the future. These include a two-hour transfer delay for transactions, mandatory two-factor authentication (2FA) for transfers, and a comprehensive review of their systems.

By implementing these protocols, Banana Gun aims to bolster its defences and protect users from future threats.

The response to the hack also highlights a broader trend in the cryptocurrency space, where exchanges and trading platforms are increasingly prioritizing security as a means to protect users and enhance credibility.

As hackers continue to target vulnerabilities within the crypto ecosystem, firms like Banana Gun are recognizing the need for vigilance and proactive measures to safeguard their users’ investments.

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• Exodus donates $1.3 million to Stand With Crypto to help mobilise crypto holders to vote in November.
• The Stand With Crypto advocacy group recently joined forces with a16z and OpenSea to launch a new creator legal fund.

Crypto wallet provider Exodus has announced it donated $1.3 million to Stand With Crypto, a bipartisan crypto advocacy group.

This brings the total amount in donations to the advocacy group to over $2.79 million.

According to an announcement on Sept. 24, Stand With Crypto will use these funds to promote community initiatives aimed at pushing more people to vote in the upcoming US election. The program targets more crypto holders, encouraging them to register and coming out to vote.

While voter mobilization is a major aspect, the broader goal is to push for clarity in crypto regulation in the country.The election of crypto-friendly legislators to Congress is one such step.

Stand With Crypto is also tracking crypto-related comments and plans by Donald Trump and – recently – Kamala Harris.

We’ve tracked 21 statements on crypto from @realDonaldTrump & he’s rated Strongly Supportive.@VP Harris recently made a Somewhat Supportive statement & we’ve added it to our card.

Major candidates weighing in on crypto would’ve been unthinkable even recently. We’re winning. pic.twitter.com/OQoqqylaia

— Stand With Crypto🛡️ (@standwithcrypto) September 23, 2024

Earlier this month, Stand With Crypto teamed up with a16z and NFT marketplace OpenSea to launch a creator defense fund.

The legal fund followed the SEC’s Wells Notice against OpenSea, a regulatory approach highly criticized for its overreach and for alleging that digital collectibles are securities.

Crypto donations to PACs

The cryptocurrency sector has also been massively active in the US election campaign donations. Coinbase, Ripple and Gemini are some of the big donors, with funds going to political action committees.

One of the super PACs to receive a staggering amount of campaign donations is Fairshake.

Recent data shows the PAC has over $177 in crypto donations- money that Fairshake is utilizing as it looks to help bring crypto-friendly lawmakers to Congress.

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• Only 10% to 20% of financial advisors admitted to owning crypto in their portfolios
• Now, roughly, 70% indicated they did
• The approval of Bitcoin ETFs and the Fed’s rate cut are bullish signals that may have changed that

In a client memo, Bitwise’s CIO said that a “wave of the most powerful people in finance are finally allocating to crypto.”

Matt Hougan was reflecting on a keynote speech he’d given at the Barron’s Advisor 100 Summit, where the top financial advisors in the US meet, in Palm Beach, Florida.

Despite Hougan having spoken at the event twice before, he states this was the first time he’d taken to the main stage thanks to the approval of Bitcoin exchange-traded funds (ETFs) earlier this year.

To better understand his audience, Hougan asked them to raise their hands if they owned Bitcoin or another crypto asset in their portfolio. At the last two events, Hougan states that around 10% to 20% of the people in the room raised their hands.

“This year, nearly every hand in the room went up,” he wrote. “I don’t have an exact count, but I’d estimate at least 70% of the advisors in the room raised their hands.”

Following this, he asked if any of them had Bitcoin in client portfolios, with very few raising their hands. According to Hougan, this is expected as many advisors work for broker-dealers that don’t “allow them to buy Bitcoin ETFs yet.”

In Hougan’s opinion, financial advisors always allocate first in their portfolios and “client allocations typically follow six to 12 months later.”

Bullish trends

A change in how financial advisors view crypto can be pointed to several factors, according to Hougan.

These include the US Federal Reserve’s decision to cut interest rates by 50 basis points, spot Bitcoin ETFs being approved by Morgan Stanley, and the US Securities and Exchange Commission’s (SEC) options approval of Blackrock’s Bitcoin ETF.

However, despite bullish trends, Hougan argues that the “show of hands in Palm Beach was one of the most powerful signs of the times.”

“A wave of the most powerful people in finance are finally allocating to crypto,” he said. “When it spreads from them to their clients, things could get interesting quickly.”

Productive year

Hougan’s memo comes after a busy year for Bitwise. Following the approval of Bitcoin ETFs, Bitwise and VanEck promised to donate 10% of their profits to Bitcoin’s development.

In March, the asset management company, filed an S-1 form with the SEC, applying for an Ethereum ETF, which was approved in July.

In June, Hougan stated that Ethereum ETFs would attract $15 billion in net flows in their first 18 months. With so many moving pieces this year, aiming to help advance the crypto space, it’s no wonder an increasing number of financial advisors admitted to owning crypto.

The post Bitwise CIO: More financial advisors are “allocating to crypto” appeared first on CoinJournal.

• Kraken has closed the acquisition of Dutch cryptocurrency exchange Coin Meester B.V.
• The exchange has been expanding its services across EU ahead of MiCA regulation.

Crypto exchange Kraken has completed the acquisition of Coin Meester B.V., or BCM, a regulated Netherlands-based crypto broker.

BCM has regulatory approval as a registered virtual asset service provider in France and Poland.

This footprint in the Netherlands allows Kraken to offer its services in France and Poland. According to an announcement, the acquisition of BCM will help strengthen Kraken’s efforts to expand its services across Europe.

“The completion of the BCM acquisition is a key milestone in our European expansion, allowing us to leverage our strong footprint and market-leading position in euro volume and liquidity to significantly grow our market share in the years ahead,” Brian Gahan, Kraken’s managing director of Europe, noted in a statement.

Kraken will begin to extend its products to BCM clients in coming months. This will include access to over 200 cryptocurrencies. Users will also benefit from the liquidity, security and customer support available to Kraken’s users.

Kraken’s EU expansion

This deal follows Kraken’s expansion efforts across Europe as the industry eyes compliance with the European Union’s Markets in Crypto-Assets (MiCA) law.

Currently, Kraken provides VASP services either directly or through different partnerships across the EU. Countries where the exchange offers its services include Germany, Spain, Italy, the Netherlands and France. The crypto exchange also now offers its services in Ireland and Poland.

In Belgium, Kraken operates through its VASP platform in Ireland.

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