Telcoin project loses $1.3 million due to exploit

The price of the Telcoin token (TEL) fell by more than 40% after a bug related to the wallet implementation on the Polygon network was identified. PeckShield researchers were among the first to notice the bug.

#PeckShieldAlert Telcoin $TEL has dropped -41%
Telcoin has suffered an exploit, resulting in a loss of ~$1.3M worth of cryptos https://t.co/FS756GaeWo pic.twitter.com/LDPZVu05Fv

— PeckShieldAlert (@PeckShieldAlert) December 26, 2023

According to researchers, the attacker managed to withdraw about $1.3 million from affected accounts.

Following the incident, Telcoin’s developers on December 25 paused the app’s operation. They soon fixed the bug in the software and published a post explaining the situation.

Update on #Telcoin security incident: We’ve identified the root cause, which was not an issue with the Telcoin Wallet code itself, but with the proxy implementation of the wallet on Polygon — primarily impacting wallets that have never initiated transactions. We have deployed a…

— Telcoin (@telcoin) December 26, 2023

They said only wallets of users who \”never initiated transactions\” were affected.

\”We plan to restore the previous balances of all wallets (for all affected assets) before relaunching the application, which may take some time. No keys, backend systems, or user data were compromised,\” the project representatives said.

After the dump, TEL’s price rebounded noticeably — up 51.9% over the last 24 hours, according to CoinGecko.

The Telcoin site states that the project creates \”affordable and high-quality financial products for every mobile phone user\”.

Earlier, Ledger announced a compromise of the software library used by decentralized applications. The hacker was able to inject malicious code into their interfaces.

Later it emerged that the amount of user losses was about $600,000.