Polygon-based crypto project Telcoin was hit by an attack on Tuesday morning. Thanks to a security flaw, a hacker was able to steal a large amount of crypto.
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Problem in the crypto network for certain wallets
According to a tweet from Peckshield, Telcoin is dealing with a so-called exploit. Approximately $1.3 million worth of cryptocurrencies were lost. Telcoin itself provided an update on the security incident via Twitter.
Update on #Telcoin Security Incident: We have identified the root cause, which was not an issue with the Telcoin wallet code itself, but with the walletās proxy implementation on Polygon ā which primarily impacted wallets that have never initiated transactions. We used aā¦
ā Telcoin (@telcoin) December 26, 2023
The project identifies the cause of the update, which is reportedly not in the Telcoin Wallet code itself. The issue affected the walletās proxy implementation on the Polygon network. This particularly affected wallets that had never initiated transactions.
Telcoin comes to the victims
Telcoin has taken measures to prevent further exploitation of the issue. The team plans to restore all balances of the affected wallets. This will be regulated before the network is reactivated.
According to Telcoin there are none private keys, underlying systems or user data have been breached. The Telcoin team has hinted that they will provide another update soon.
TEL crypto price plummets
As a result of the attack on the network, which resulted in a loss of $1.3 million, TELās stock price plummeted. In the last 24 hours, the altcoin has fallen by 35%. However, at its low point, the price was down more than 66%, according to data from CoinMarketCap.
#PeckShieldAlert Telcoin $TEL is down -41%
Telcoin suffered an exploit that resulted in the loss of approximately $1.3 million worth of cryptos pic.twitter.com/LDPZVu05Fvā PeckShieldAlert (@PeckShieldAlert) December 26, 2023
The price has now recovered somewhat, but is still more than 35% below the price 24 hours ago.
Such attacks on crypto projects usually have a serious impact on the prices of the cryptocurrencies that are part of the network. This is because of the panic. Since it is not immediately clear how bad the situation is at the start of an attack, traders prefer to err on the side of caution.
This is reflected, among other things, in the significantly increased trading volume. This is up more than 1500% compared to 24 hours ago.
Telcoin is a project that decentralized finance (DeFi) creates applications on Polygon (MATIC) aimed at mobile users. For example, tools for remittances and cryptocurrency trading are being developed using blockchain technology.
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