The Telcoin app recently faced a series of targeted attacks draining several wallets, causing a sharp 65% decline in the price of Telcoin ($TEL) for a brief period. The exploited vulnerability is estimated to have resulted in a loss of around $1.3 million.
The identified address associated with these security breaches is 0x35d2775e5f95596509951b140d68fc5b9185ff98, as reported by PolygonScan.
Telcoin team is actively investigating the incident and implementing necessary measures to mitigate the damage caused by the exploit.
MetaTrust on-chain monitor, MetaScout, has recently uncovered a series of targeted attacks aimed at the Telcoin wallet $TEL. As a result of these attacks, the price of Telcoin has experienced a sudden and severe 65% decline, causing substantial financial losses estimated at… https://t.co/HECHoSDlHh
— MetaTrust Labs (@MetaTrustLabs) December 26, 2023
Telcoin Freezes Use of its App
As a precautionary measure, Telcoin has temporarily frozen the use of its application to conduct a thorough investigation into the security breach. The team has assured users that they are aware of the situation and is committed to releasing an update as soon as possible to address the issue and restore normalcy.
The market response to the exploit has been swift, with the price of TEL coin plummeting by over 65% as it traded at $0.00081742. However, at the time of writing, the price of TEL has recovered significantly as it trades at $0.001457, 34% down in the last 24 hrs, as per Coingecko.
Telcoin is currently regulated in Singapore as a Major Payment Institution by the Monetary Authority of Singapore. The firm is also registered and regulated in a number of other global markets, including Canada and Australia, and maintains primary offices in Singapore, Tokyo, Dubai, and Los Angeles.
Telcoin later updated that the root cause of the exploit was not an issue with the Telcoin Wallet code itself, but with the proxy implementation of the wallet on Polygon that impacted the wallets that had never initiated transactions. The firm was quick to deploy a fix to stop further exploitation.
Update on #Telcoin security incident: We’ve identified the root cause, which was not an issue with the Telcoin Wallet code itself, but with the proxy implementation of the wallet on Polygon – primarily impacting wallets that have never initiated transactions. We have deployed a…
— Telcoin (@telcoin) December 26, 2023
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