Telcoin Drops 40%: 1.2 Million Dollars Polygon Wallet Hack

The impacted users can expect a full restoration of their balances, as the exploit did not compromise any private keys, according to the reassurance provided by the developers.

Ecem EFE26/12/20231 Mins read468

Telcoin Drops 40% 1.2 Million Dollars Polygon Wallet Hack

Crypto News- In the past 24 hours, the Telcoin (TEL) token witnessed a significant 40% drop in its value, stemming from a critical error linked to the implementation of a Polygon wallet. This glitch resulted in a reduction of user balances within the Telcoin mobile application, and the blockchain security firm Peckshield categorized the situation as an exploit.

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Telcoin Drops 40%: 1.2 Million Dollars Polygon Wallet Hack

The exploit was exploited to drain more than $1.2 million from affected accounts, as disclosed within Telcoin’s community on the Discord online forum. Noteworthy is the fact that the users impacted by this incident were those who had never initiated any transactions through the Telcoin application.

Telcoin, a company specializing in the development of financial applications like trading and remittance tools on the Polygon blockchain for mobile devices, swiftly responded by freezing its application during the early hours in Asia on Tuesday. According to posts from the developers on X, the issue was attributed to the way the application interacted with the Polygon blockchain. It’s crucial to highlight that Telcoin assured its users that no private keys or sensitive data were compromised during this incident.

Telcoin (TEL) Price Drop and Exploit Incident

In a subsequent communication, Telcoin clarified that the root cause didn’t lie in the Telcoin Wallet code itself but rather in the proxy implementation of the wallet on Polygon, particularly affecting wallets that had never initiated transactions. The team acted promptly by deploying a fix to halt any further exploitation.

As part of their strategy to resolve the situation, Telcoin announced intentions to restore all wallets to their previous balances before reactivating the application service. This incident sheds light on the inherent challenges and vulnerabilities associated with blockchain implementations and underscores the significance of rapid and transparent communication in addressing such issues.

Sources:coindesk

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Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

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