Telcoin Falls 40% After Experiencing an Alleged $1.2M Exploit Associated with the Use of Polygon Wallets

Following a perceived error in the installation of a Polygon wallet that resulted in a decrease in user balances on the Telcoin mobile application, the price of the Telcoin (TEL) token dropped by 40% in less than a day. Peckshield, a blockchain security firm, identified the slide as exploitable. Messages on the Discord online forum, which is part of Telcoin’s community, state that the exploiter was able to withdraw almost $1.2 million from impacted accounts. As per the corporation, they were exclusive to users who had “never initiated transactions” through the Telcoin application.
According to developers in an X post, Telcoin, which creates financial apps for mobile device users based on the Polygon blockchain, including trading and remittance facilities, froze its program early on Tuesday in the Asian day. They clarified in a follow-up post that no private keys or sensitive data were disclosed, and that the problem stemmed from the way the application interacted with the Polygon blockchain.
“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,” Telcoin posted on X . “We have deployed a fix to stop further exploitation.”
The group stated that before restarting the application service, all wallets would be balanced back to their initial amounts.