Telcoin's Polygon Wallet Exploit Leads to 40% Drop in TEL Value

• Telcoin (TEL) Token Price Suffers a 40% Plunge after Polygon Wallet Implementation Error
• Exploit Results in Over $1.2 Million in Drained Funds
• Telcoin's Response and Remedial Measures
• Identifying the Root Cause
• Plans to Revert Wallet Balances and Resume Service
• Update (Dec. 26, 10:44 UTC)

Telcoin (TEL) Token Price Suffers a 40% Plunge after Polygon Wallet Implementation Error

The Telcoin (TEL) token saw a stark 40% drop in its price within the last 24 hours. The prompt downturn followed an error linked to the implementation of a Polygon$0.967 -3.65% wallet, leading to decreased user balances on the Telcoin mobile application. Blockchain security firm Peckshield categorized this downturn as an exploit.

Exploit Results in Over $1.2 Million in Drained Funds

The exploit led to a drain of over $1.2 million from the affected accounts, based on information derived from Telcoin's Discord community. The affected users were reportedly those who had never initialized transactions on the Telcoin application.

Telcoin's Response and Remedial Measures

Telcoin, a firm that develops financial apps such as trading and remittance tools on the Polygon blockchain for mobile device users, suspended its application in the early Asian hours on Tuesday. The developers disclosed that the problem was linked to the application's interaction with the Polygon blockchain. It was emphasized that no private keys or sensitive data were compromised.

Identifying the Root Cause

The root cause, as identified by Telcoin, was not an error with the Telcoin Wallet code but with the proxy implementation of the wallet on Polygon. This primarily impacted wallets that had never initiated transactions. To prevent further exploitation, Telcoin has deployed a fix.

Plans to Revert Wallet Balances and Resume Service

The team at Telcoin plans to restore all affected wallets to their prior balances before resuming the application service.

Update (Dec. 26, 10:44 UTC)

Additional information regarding the drained funds was added in the second paragraph.

Edited by Jonathan Stoker