In a recent setback, Telcoin, known for its mobile-centric financial solutions, recently encountered a significant vulnerability in its wallet on the Polygon blockchain. This led to a 40% drop in the Telcoin (TEL) token’s value, resulting in over $1.2 million being taken from user accounts.
Shocking, right? Dive into the details here.
In response, Telcoin quickly paused its mobile application to prevent more unauthorized transactions. They acted promptly, with the primary aim of safeguarding users. Security experts from CertiK assessed the situation and estimated the impact of the exploit at $1.25 million. Their analysis showed that the exploit involved un-initialized proxy contracts being activated with incorrect configurations to move Telcoins.
Telcoin soon provided a clear explanation of the situation. They identified that the problem was with the wallet’s interaction on the Polygon blockchain. It’s worth noting that most affected accounts hadn’t previously made transactions through Telcoin’s app. Importantly, Telcoin assured users that their private keys, backend systems, and personal data remained secure.
Also Read: Top Crypto Hacks of 2023: Analyzing the Biggest Crypto Security Breaches – Research Report
Restoring Trust and Balances
After thorough investigation, Telcoin determined that the main issue wasn’t with its wallet’s code but how it interacted with the Polygon blockchain. To address the situation, Telcoin committed to resetting all impacted wallets to their previous balances. This move highlights Telcoin’s dedication to its users and its commitment to addressing challenges head-on.
Market Response and Recovery
Following the incident, the TEL coin’s value dropped by 65%, reaching $0.00081742. However, there’s good news. As of the latest update, the TEL price has rebounded to $0.00149—a 21% increase within 24 hours, according to Coingecko.
Telcoin’s proactive approach during this challenging time showcases its commitment to user safety. This event emphasizes the importance of continuous vigilance and robust security measures in the dynamic world of cryptocurrencies.
Read More: Crypto Hacking Losses Plunged by Nearly 50% in 2023; Here’s Why
Be the first to comment