While a new hacking incident occurs every day in the cryptocurrency market, the last victim of hackers was the decentralized finance protocol Telcoin.
Making a statement, the Telcoin team stated that they were aware of the problem on the platform and said that they had temporarily frozen the use of the Telcoin App.
At this point, it was stated that user balances in the Telcoin mobile application decreased after an obvious breach regarding the Polygon (MATIC) wallet application.
Afterwards, the team made an updated statement about the problem and explained that the problem was not related to Telcoin Wallet's own code, but to the wallet's proxy application in Polygon.
The team also stated that no private keys or sensitive data of users were leaked during the problem.
Finally, the team added that it plans to return all wallets to their previous balances before reopening the app service.
“Update on Telcoin security incident: We have determined that the issue is not with the Telcoin Wallet code itself, but with the wallet's proxy implementation on Polygon, and primarily affects wallets that have never initiated transactions. We have implemented a fix to stop further exploitation.
We plan to restore all wallets to their previous balances (for all affected assets) before turning the app service back on; This may take some time. No keys, backend systems or user data were breached. We will provide another update soon and appreciate everyone's patience and support.
“The Telcoin team is grateful for the assistance of the blockchain security community and will publicly thank them once we complete our investigation.”
Following the security breach in Telcoin, the local token TEL suffered a decline of more than 50%. TEL, which recovered afterwards, continues to be traded at $0.001925, with a 15% decrease at the time of writing.
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
*This is not investment advice.
