Soon after an exploit that led to the transfer of $1.2 million from some customers’ accounts, Telcoin, the company informed CoinDesk in an X message today, restored all user balances.
Paul Neuner, the CEO and founder of Telcoin, commented, “I’m proud of the team for making that happen in record time. Preemptively restoring affected user wallets from our company treasury was a no-brainer.”
An apparent issue with a Polygon wallet implementation led to customer balances on the Telcoin mobile application dropping in late December. Telcoin is a financial application developer that offers mobile users options for trading and remittance.
It appears that a bug in the communication between a proxy contract and Telcoin’s digital wallet caused the problem. According to Neuner, there was a technical problem that resulted from the proxy performing some storage tasks incorrectly, which made it possible for the assets to be removed.
The vulnerability had no effect on the larger Telcoin ecosystem because no admin keys were disclosed.
The statement from Telco stated, “We collaborated with top blockchain security professionals and law enforcement to freeze and recover stolen funds while we preemptively restored funds from the company’s treasury.”
Deposits increased concurrently as users’ positive feeling improved due to the prompt resolution.
The company stated, “We saw over a 400 percent increase in deposits compared to last month in the first day since restoring Telcoin App services, with a ratio of US$3.60 being deposited for every US$1 being withdrawn.”