- Telcoin’s TEL token dropped by 50% following an exploit, allowing a hacker to drain $1.2 million
- Funds were drained from affected mobile accounts, but Telcoin assures users that no private keys were compromised.
- Telcoin has committed to refunding users who suffered losses in the exploit, emphasizing the security of private keys despite the incident.
The value of Telcoin’s TEL token plunged 50% yesterday after an exploit was discovered that allowed a hacker to drain some $1.2 million in coins. The loss stemmed from an apparent wallet implementation error on the Polygon network, with the exploiter able to drain the funds from affected mobile accounts. However, Telcoin has assured users that no private keys were taken and has promised to refund those who lost funds.
Telcoin Wallet is Safe
Telcoin revealed that it was aware of a problem in the early hours of Tuesday, writing in an X post that it had frozen the wallet to look into the matter. Shortly afterward, security firm Peckshield revealed the full extent of the loss:
#PeckShieldAlert Telcoin $TEL has dropped -41%
Telcoin has suffered an exploit, resulting in a loss of ~$1.2M worth of cryptos https://t.co/FS756GaeWo pic.twitter.com/LDPZVu05Fv— PeckShieldAlert (@PeckShieldAlert) December 26, 2023
Telcoin issued a further communication where it advised that the root cause of the issue was not with the Telcoin Wallet code itself but instead with “the proxy implementation of the wallet on Polygon,” and added that it had deployed a fix to stop further exploitation. The company was then quick to state that it would look after affected users:
We plan to restore all wallets to their previous balances (for all affected assets) prior to turning the app service back on, which may take some time. No keys, backend systems, or user data were breached.
The TEL token has enjoyed a resurgence this year, jumping from $0.0009 to $0.0029 in less than a month, and many supporters will have used this opportunity to buy the dip. We highlighted TEL as a coin to watch in 2021, and were rewarded with a near 3,000% performance.
