TEL plummets by 40% – $1.2 million exploit related to wallet implementation on Polygon | CoinDesk JAPAN

Telcoin (TEL), the token of Telcoin, a project that develops financial applications such as trading and money transfer tools based on the Polygon blockchain for users of mobile devices, has fallen 40% in the past 24 hours. did. The price action follows an incident in which user balances on Telcoin’s mobile app decreased due to an apparent error related to the wallet implementation on the Polygon blockchain. Blockchain security company Peckshield warned that the attack was an exploit (an attack that takes advantage of a vulnerability).

According to a message posted on the Telcoin community on Discord, the perpetrators of the exploit were able to make more than $1.2 million (168 million yen, at an exchange rate of 140 yen to the dollar) from the funds leaked from the affected accounts. That’s what it means. However, Telcoin said the leak was only from users who had “never initiated transactions” from the Telcoin app.

The developers announced on X (formerly Twitter) that Telcoin had frozen the application early on the 26th Asian time. In a follow-up post, it said the issue was related to the way the application interacted with the Polygon blockchain, and that no private keys or sensitive data had been compromised.

Telcoin said in a statement: “We have identified the root cause. This is not an issue with the Telcoin Wallet code itself, but rather an issue with the wallet’s proxy implementation on Polygon, primarily due to the initiating transaction. “This affected wallets that do not have the same security code,” and “we have implemented a fix to prevent further exploitation.”

The Telcoin team said they plan to restore all wallets to their previous balances before resuming application services.

｜Translation and editing: Rinan Hayashi
｜Image: Kevin Ku/Unsplash
｜Original text: Telcoin Suffers Apparent $1.2M Exploit Related to Wallet Implementation on Polygon; TEL Drops 40%