Telcoin Suffers Apparent Exploit Related to Polygon Wallet Implementation; TEL Drops 40%

The Telcoin (TEL) token price fell 40% in the past 24 hours after an apparent error relating to a Polygon wallet implementation caused user balances to drop on the Telcoin mobile application. The slide was flagged as an exploit by blockchain security company Peckshield.

The company develops financial applications, such as trading and remittance tools, based on the Polygon blockchain for mobile-device users.

Telcoin 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.