The
Telcoin
(TEL)
token
price
fell
40%
in
the
past
24
hours
after
an
apparent
error
relating
to
a
wallet
implementation
on
Polygon
caused
user
balances
to
drop
on
the
Telcoin
mobile
application.
The
slide
was
flagged
as
an
exploit
by
blockchain
security
company
Peckshield.
The
exploiter
managed
to
make
over
$1.2
million
in
funds
drained
from
affected
accounts,
according
to
messages
on
Telcoin’s
community
on
the
Discord
online
forum.
However,
these
were
only
from
users
who
had
“never
initiated
transactions”
from
the
Telcoin
application,
the
company
said.
Telcoin,
which
develops
financial
applications,
such
as
trading
and
remittance
tools,
based
on
the
Polygon
blockchain
for
mobile-device
users,
froze
its
application
in
early
Asian
hours
on
Tuesday,
developers
said
in
an
X
post.
In
a
follow-up
post,
they
said
the
issue
was
related
to
how
the
application
interacted
with
the
Polygon
blockchain
and
that
no
private
keys
or
sensitive
data
were
leaked.
“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,”
Telcoin
posted
on
X
.
“We
have
deployed
a
fix
to
stop
further
exploitation.”
The
team
said
it
planned
to
restore
all
wallets
to
their
previous
balances
prior
to
turning
the
application
service
back
on.
UPDATE
(Dec.
26,
10:44
UTC):
Adds
drained
funds
in
second
paragraph.
UPDATE
(Dec.
26,
15:27
UTC):
Rewrites
headline,
first
paragraph
to
clarify
the
wallet
is
a
Telcoin
wallet
implemented
on
Polygon
