TEL Crypto Crashed 40% Telcoin App Exploit, What Next?
Telcoin, a company that creates financial applications for mobile users based on the Polygon blockchain, faced a major security breach on its platform, resulting in a drop of 40% in Tel value in the past 24 hours and a loss of around $1.3 million in digital assets.
The team admitted problems with its Telcoin App in an X post on Dec. 26, without giving more details.
Source: X
In response to the incident, the Telcoin team stopped the app temporarily in the early Asian hours on Tuesday to prevent further damage.
Meanwhile, The platform did not reveal the details of the exploit or the amount stolen. Blockchain security company CertiK guessed that the project lost about $1.25 million, and said that:
“The exploiter took advantage of un-initialized proxy contracts and initialized them with vulnerable implementations to transfer Telcoins. This contract was not in the scope of the audit conducted by CertiK”
How Telcoin Responded to the Security Breach
Telcoin acted swiftly and transparently in response to the exploit. The company posted a detailed explanation on X, a social media platform, and updated its users on the Discord online forum. The company assured its users that no private keys or sensitive data were leaked in the exploit and that only accounts that had never initiated transactions were affected.
Source: X
Telcoin’s development team worked hard to identify and fix the root cause, which was related to the proxy implementation of the wallet on Polygon. The team deployed a fix to stop further exploitation and planned to restore all wallets to their previous balances before turning the app service back on. However, The project did not say when this access would be restored but said the process “might take a while.”
TEL Drops 40%
On-chain data reveals the assets taken include 37 Ether (ETH) and over 1.3 million Polygon (MATIC) worth $85,000 and $1.19 million, respectively. The Telcoin team has not shared the details of the attack, but blockchain security company PeckShield said the losses were about $1.3 million.
After the Telcoin attack, TEL, the native app of the platform, fell by 40% from $0.0023 to $0.00079. At the time of writing, the token had bounced back a bit and was trading around $0.0015, according to data from CoinMarketCap.
How Telcoin Restored User Trust
Telcoin showed its commitment to user security and protection by addressing the exploit promptly and effectively. The company pledged to restore all affected user balances and apologized for the inconvenience caused. The company also thanked its community for their support and patience during the incident.
Telcoin demonstrated its resilience and reliability in the face of cyber threats by fixing the vulnerability and recovering from the price drop. The company’s proactive approach in handling the exploit shows its dedication to its users and the integrity of its platform.
