April 19, 2024
Telcoin's Wallet Issue on Polygon Triggers 40% TEL Token Price Drop
Latest Cryptocurrency News

Telcoin (TEL) Sees 40% Plummet Following Wallet Glitch on Polygon

The Telcoin (TEL) token experienced a steep 40% drop within 24 hours due to a reported issue linked to a wallet implementation on Polygon. This problem resulted in decreased user balances on the Telcoin mobile application and was identified as an exploit by Peckshield, a blockchain security company.

Messages shared on Telcoin’s Discord forum indicated that the exploit led to the draining of more than $1.2 million from affected accounts. However, this impact was specifically observed in accounts where users had not initiated any transactions through the Telcoin application, according to the company. Telcoin, known for its development of financial tools like trading and remittance applications on the Polygon blockchain for mobile users, took proactive measures by freezing its application during early Asian hours on Tuesday, as communicated in a post.

In subsequent updates, Telcoin developers specified that the issue was tied to the interaction between the application and the Polygon blockchain, emphasizing that no private keys or sensitive information had been exposed. They pointed out, “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,” stated Telcoin in a communication.

The team promptly deployed a fix to prevent further exploitation and announced plans to restore all affected wallets to their previous balances before resuming the application service.

Image by freepik

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