Telcoin Swiftly Secures Users After $1.2M Polygon Wallet Hack; Full Restoration Promised

The post Telcoin Swiftly Secures Users After $1.2M Polygon Wallet Hack; Full Restoration Promised appeared first on Coinpedia Fintech News

In a recent setback, Telcoin, a leading developer of mobile-centric financial applications, faced a significant exploit within its wallet implementation on the Polygon blockchain. This incident triggered a 40% decline in the value of the Telcoin (TEL) token and resulted in the unauthorized withdrawal of over $1.2 million from user accounts.

#CertiKSkynetAlert

Telcoin was exploited for ~$1.25M

The exploiter took advantage of un-initialized proxy contracts and initialized them with vulnerable implementations to transfer Telcoins.

This contract was not in the scope of the audit conducted by CertiK

— CertiK Alert (@CertiKAlert) December 26, 2023

Telcoin’s Swift Response and Security Measures

Telcoin’s immediate response demonstrated its unwavering commitment to user security. The company promptly halted its mobile application to prevent further unauthorized transactions, prioritizing user safety above all else. According to blockchain security firm CertiK alerts, Telcoin was exploited for $1.25 million. Their report indicated that the exploiter exploited un-initialized proxy contracts by initializing them with vulnerable implementations to transfer Telcoins.

We are aware of the situation with the Telcoin App. We have temporarily frozen use of the app while we look into the issue, and will provide an update as soon as we can.

— Telcoin (@telcoin) December 25, 2023

Telcoin provided a detailed explanation of the exploit, attributing it to the wallet’s proxy implementation on the Polygon blockchain. Importantly, Telcoin clarified that the impact of the exploit primarily affected accounts that had not engaged in transactions through the company’s app previously. The company stressed that no private keys, backend systems, or user data were compromised during the incident, offering reassurance to its user base.

Identifying the Root Cause and Commitment to Restoration

Further investigations by the Telcoin team revealed that the root cause of the exploit did not originate within the Telcoin Wallet code itself but was linked to the wallet’s interaction with the Polygon blockchain. In a significant step beyond remediation, Telcoin committed to restoring all affected wallets to their previous balances. This action underscores Telcoin’s dedication to its users and showcases the company’s resilience and reliability in the face of cyber threats.

Market Response and Recovery

The market response to the exploit was swift, with the price of the TEL coin plummeting by over 65%, trading at $0.00081742. However, at the time of writing, the price of TEL has significantly recovered, trading at $0.00149, reflecting a 21% increase in the last 24 hours, according to data provided by Coingecko.

As Telcoin navigates through this security challenge, its swift response sets a commendable standard for proactive risk management in the crypto industry. This incident serves as a timely reminder of the ongoing need for heightened vigilance and continuous enhancement of security protocols within the dynamic crypto landscape.