Telcoin, a developer of mobile-centric financial applications, recently suffered a security breach that resulted in the loss of over $1.2 million from user accounts.
Peckshield, a blockchain security firm, discovered the flaw, which was reported by members of the Telcoin Discord community forum.
The attack had a significant impact on Telcoin’s native token, TEL, causing around a 42% drop in its price due to a glitch in the company’s Polygon blockchain wallet.
Telcoin quickly responded to the exploit by suspending its app to prevent further fraudulent transactions. The vulnerability was traced back to the wallet’s proxy implementation on Polygon, affecting users’ accounts that had never previously used the Telcoin app.
Importantly, Telcoin assured users that no private keys or sensitive data were compromised as a result of the incident.
Further investigation revealed that the problem was caused by how the wallet communicated with the Polygon network, not by a bug in the Telcoin Wallet source code.
The company quickly issued a patch to address and prevent the exploitation of this vulnerability, demonstrating its dedication to user security.
In a reassuring move, Telcoin promised to return all impacted wallet funds to their original amounts. This commitment demonstrates the company’s commitment to its users and the integrity of its platform.
However, the incident had an impact on the price of TEL, which has dropped by 37% in the last 24 hours and is currently trading at around $0.001507, according to CoinMarketCap data.
