Telcoin, a Blockchain project that develops financial applications such as trading and remittance tools for mobile users, refunded all user balances following a security vulnerability that led to $1.2 million being stolen from some users' accounts.
Telcoin Restores User Balances After Security Vulnerability, 400% Increase in Deposits
The exploit, which occurred in late December, was caused by a bug in a wallet app at Polygon, which resulted in the theft of user balances on the Telcoin mobile app.
The issue was caused by an error in the interaction between Telcoin's digital wallet and a proxy contract that incorrectly performed certain storage functions. This led to a technical conflict that led to the withdrawal of assets.
“Making the decision to pre-restore affected user wallets from our corporate treasury was a no-brainer, and I am proud of our team for doing so in record time,” said Telcoin founder and CEO Paul Neuner.
Despite the vulnerability, the broader Telcoin ecosystem was not affected as no admin keys were leaked.
“Telcoin preemptively restored funds from the company's treasury while working with leading blockchain security experts and law enforcement to freeze and recover the stolen funds,” the company said.
*This is not investment advice.
