Telcoin ($TEL) has encountered a considerable setback, witnessing a substantial drop of over 41% within a few hours due to a significant security breach on the Telcoin cryptocurrency platform.

This breach led to the apparent theft of millions of TEL tokens, amounting to around $1.3 million in cryptocurrency losses, as reported by peckshieldalert.

#PeckShieldAlert Telcoin $TEL has dropped -41%
Telcoin has suffered an exploit, resulting in a loss of ~$1.3M worth of cryptos https://t.co/FS756GaeWo pic.twitter.com/LDPZVu05Fv

— PeckShieldAlert (@PeckShieldAlert) December 26, 2023

In response to the security compromise, the Telcoin team swiftly addressed the situation involving the Telcoin App. Taking immediate action, they temporarily suspended the app’s usage to thoroughly investigate the breach.

A recent update from the Telcoin team shed light on the identified root cause of the security compromise. Contrary to initial assumptions, the issue did not originate from the Telcoin Wallet code itself but rather from the proxy implementation of the wallet on Polygon. This primarily impacted wallets that had never initiated transactions.

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

In a proactive measure to prevent further exploitation, the team promptly implemented a fix. Their plan now involves restoring all affected wallets to their previous balances for all impacted assets before resuming app services. However, this restoration process may take some time, underscoring the Telcoin team’s meticulous approach to safeguarding user funds and ensuring a secure platform.

Conclusion

This incident underscores the vulnerability of cryptocurrency platforms to security threats and emphasizes the critical need for swift and transparent responses from development teams. As Telcoin addresses the aftermath of this security breach, users and the broader crypto community will closely observe the platform’s security enhancements and recovery efforts.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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The post Telcoin Faces Significant Setback Following Security Breach appeared first on The Merkle News.

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Filed under: Bitcoin - @ December 26, 2023 11:07 pm