Remittance-focused crypto project Telcoin (TEL) is providing an update after a cybersecurity breach that resulted in the loss of funds.
The Remittances Crypto Project say that it is ‘aware of the situation with the Telcoin app’ and has consequently ‘frozen the use of the app’.
According to cybersecurity firm PeckShield, Telcoin suffered an exploit that resulted in the loss worth of crypto assets worth approximately $1.3 million.
Telcoin is trading at $0.00168 at the time of writing, down 37% in the last 24 hours.
About the next action for the affected wallets: the remittance-oriented crypto project say,
“We identified the root cause, which was not an issue with the Telcoin Wallet code itself, but with the wallet’s proxy implementation on Polygon – particularly affecting wallets that have never initiated transactions. We have implemented a solution to stop further exploitation.
We plan to reset all wallets to their previous balances (for all affected assets) before re-enabling the app service, which may take some time.”
According to Telcoin, no keys, backend systems or user data were compromised.
In addition to allowing users to send money in fiat currency to more than a dozen countries around the world, the Telcoin app also allows users to “deposit, send, receive, withdraw, and transfer a variety of digital assets to trade” via a decentralized liquidity network running on the Ethereum layer 2 platform Polygon (MATIC).
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