Unibot makes changes to thwart private key thieves in $300m Telegram bot market

In an effort to curb the theft of users’ private keys, Unibot, a Telegram crypto trading bot, launched a new offering on August 9.

Called Unibot Cloud, the programme is designed to strengthen the protection of users’ private keys by shifting them off the Telegram platform and delivering the codes as a self-destructing message only the user can decipher.

The move updates the way Unibot stored its users’ private keys, which was directly on Telegram and posed a serious security flaw. Private keys in crypto are alphanumeric text strings used to sign transactions.

Storing them on Telegram meant they were potentially unsafe. Exposed private keys can be dangerous because thieves can use them to steal crypto tokens from a victim’s wallet.

‘The information does not clarify whether a third-party provider is involved, which could be a potential risk factor, such as susceptibility to supply chain attacks.’

—  Hugh Brooks

While Unibot’s update offers some improvement in private key storage, blockchain security firm CertiK says there are still concerns left to be addressed due to the lack of information provided by Unibot about how private keys are now stored.

“The information does not clarify whether a third-party provider is involved, which could be a potential risk factor, such as susceptibility to supply chain attacks,” Hugh Brooks, director of security operations at CertiK told DL News.

NOW READ: Singapore imposes rules to make stablecoins ‘credible digital medium of exchange’

The lack of an official response to questions concerning storage location of private keys and the type of encryption being used has prompted inquiries from several users, Brooks stated.

Unibot did not immediately respond to requests for comment.

Telegram bots have become increasingly popular and spawn a crypto niche that is worth $303 million in market capitalisation, according to crypto market data aggregator CoinGecko.

These bots can do everything from trading token listings on Uniswap to launching new meme coins with only a few commands on Telegram.

NOW READ: Coinbase: Bitcoin is a ‘compelling’ investment in uncertain times

Some bots like MevFree have revenue-sharing arrangements with their users. This boosts the usefulness of the project. Others such as LootBot enable users to automate their airdrop activities.

“Telegram bots simplify the interaction with blockchain dapps [decentralised applications], a representative of LootBot told DL News. The LootBot representative added that this simplicity will attract more non-crypto people to the industry.

“Bots are already thinking to transition to full trading platforms like perps and options and if this happens, then it’s going to be competition for CEXs and DEXs,” the LootBot representative said.

To share tips or information about Telegram bots please contact me at osato@dlnews.com.