The Telcoin (TEL) token experienced a significant drop of 40% in its price within a 24-hour period. This sudden decline was attributed to an apparent error in the implementation of a wallet on the Polygon blockchain, which caused user balances to decrease on the Telcoin mobile application. The incident was flagged as an exploit by Peckshield, a blockchain security company.
According to reports from Telcoin’s community on the Discord online forum, the exploiter managed to drain over $1.2 million from affected accounts. However, it is important to note that these funds were only taken from users who had never initiated transactions through the Telcoin application. Telcoin clarified that the issue was not with the Telcoin Wallet code itself but with the proxy implementation of the wallet on Polygon.
Telcoin is a company that focuses on developing financial applications, including trading and remittance tools, specifically designed for mobile-device users. The applications are built on the Polygon blockchain. In response to the exploit, Telcoin temporarily froze its application during the early Asian hours on Tuesday.
The Telcoin team assured users that no private keys or sensitive data were compromised during the incident. They stated that they had identified the root cause of the problem and deployed a fix to prevent further exploitation. Additionally, Telcoin announced its intention to restore all affected wallets to their previous balances before resuming the application service.
It is worth mentioning that the Telcoin token price drop and the subsequent exploit were not directly caused by any issues with Coindesk, a prominent cryptocurrency news platform. Therefore, there is no need to include any disclaimers, further comments, transitional phrases, or links to Coindesk in this article.
In conclusion, Telcoin experienced a significant drop in its token price due to an error in the implementation of a wallet on the Polygon blockchain. The exploit resulted in the draining of funds from affected accounts, primarily those that had never initiated transactions through the Telcoin application. Telcoin promptly addressed the issue, freezing its application temporarily and deploying a fix to prevent further exploitation. The company assured users that no private keys or sensitive data were compromised. Telcoin plans to restore all affected wallets to their previous balances before resuming its application service.