The Monetary Authority of Singapore-regulated payment institution Telcoin suffered a security exploit this week. The exploit resulted in over $1.3 million worth of crypto assets being drained from its Polygon-based wallet application.
The breach triggered a temporary freeze of the app by the team. The native TEL token also plunged over 32% in price.
- Telcoin wallet app hacked; losses top $1.3 million per on-chain analyst.
- TEL token prices tank over 30% on news
- Telcoin promises restored balances.
In a Twitter update on December 26, fintech developer Telcoin revealed its investigation traced the root cause to vulnerabilities with wallet proxy tools on the Polygon blockchain, primarily impacting wallets that have never initiated transactions.
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Telcoin promises to restore all wallets
The company has deployed fixes to block further exploits as it works on reimbursing all drained funds before resuming wallet app services. Telcoin stated that no private keys, backends, or user data were compromised in the attack.
PeckShield first flagged suspicious activity draining around $1.3 million worth of crypto assets from Telcoin wallet addresses earlier. As news of the breach spread, the team swiftly froze app functions so the extent of damage could be assessed.
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TEL Token Slides
Unsurprisingly, the TEL token plunged close to 32% at press time amid the fallout before stabilizing around $0.001617. TEL peaked near $0.0024 just prior to the news breaking of the exploit. The token also plunged to a 24-hour low of $0.0007914 before climbing to its current price.
In its updates, the team thanked blockchain security investigators for helping identify the attack vector and support incident response. No definitive timeline was given for restoring wallet balances or resuming application services.
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