Telcoin's Mobile App Security Breach Results in Massive TEL Coin Value Drop

Telcoin's Mobile App Security Breach Results in Massive TEL Coin Value Drop

By: Isha Das

Recently, cryptocurrency platform Telcoin reported a significant security breach within its mobile application, drastically affecting its native TEL coin's value with a notable decrease of over 35%. This incident was swiftly brought to light, and as a precaution, usage of the mobile application was suspended, pending further investigation.

The issue was traced back to a weak point within the proxy implementation of Telcoin's wallet on the Polygon network, primarily affecting wallets that had not conducted any transactions yet. Despite the quick response and implementation of a fix, the specifics of the exploit and the total amount of money lost have not been disclosed.

Following the breach, blockchain security firm CertiK hypothesized that the project might have been exploited for an approximate value of $1.25 million. Users have been reassured by Telcoin that affected wallets would be restored to their previous balances before application access is reinstated, however, the timeline for this resolution remains unclear.

This incident caused a severe negative impact on the value of the TEL token, with a documented decrease of about 37%, to $0.00145. In the wake of this security breach, Telcoin's market capitalization saw a reduction of around $60 million, plummeting to $105 million from its previous standing of $166.78 million.

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