The price of the Telcoin (TEL) token has fallen 40% in the past 24 hours after user balances in the Telcoin mobile application decreased due to an apparent error related to the Polygon wallet implementation.The slide is Flagged as an exploit By blockchain security company Peckshield.
According to messages from the Telcoin community on the Discord online forum, the abusers were able to make more than $1.2 million from the funds leaked from the affected accounts. However, these only came from users who had “never initiated transactions” from the Telcoin application, the company said.
Telcoin, which develops financial applications such as trading and money transfer tools based on the Polygon blockchain for mobile device users, has frozen its applications in the early hours of Asian time on Tuesday, developers announced. ×post. They said in a follow-up post that the issue was related to the way the application interacted with the Polygon blockchain, and that no private keys or sensitive data had been compromised.
“We identified the root cause. This was not an issue with the Telcoin wallet code itself, but rather an issue with the wallet’s proxy implementation on Polygon. It primarily affected wallets that had never initiated transactions. ” said Telcoin. Posted At X. “We have introduced a fix to prevent further abuse.”
The team said it plans to restore all wallets to their previous balances before turning application services back on.
Updated (December 26, 10:44 UTC): Add depleted funds in second paragraph.
