Crypto platform Telcoin appears to have experienced a major security breach, resulting in the apparent theft of millions of TEL tokens.
Although the nature of the exploit remains unclear, the hackers were able to successfully withdraw millions of TEL tokens, causing the token’s price to plummet by 40% to $0.0013, according to data from CoinGecko. Telcoin acknowledged the issue with the Telcoin app in his December 26th X post, without elaborating on the matter.
Following the incident, the company suspended the use of the app while it conducts a thorough investigation. The project’s team reassured users that they are working on resolving the issue and promised to provide an update as soon as possible.
According to blockchain analysis firm PecShield, the hackers apparently stole $1.1 million worth of Polygon (MATIC) and more than $84,000 worth of Ethereum (ETH), bringing losses to the $1.3 million level. That’s what it means. As of this writing, the stolen funds remain in the hacker’s wallet.
Founded in 2017, Telcoin is a blockchain-based platform aimed at providing financial services to the unbanked. By integrating with existing mobile networks, Telcoin aims to enable users to send and receive digital payments through their mobile devices using their TEL tokens.