Telcoin suffers massive security breach, loses millions of TEL tokens

Telcoin, a fintech platform that aims to provide low-cost and high-quality financial services to mobile phone users, has been hit by a series of targeted attacks that drained several wallets and caused a sharp decline in the price of its native token, TEL.

Hackers exploit vulnerability in Telcoin app

According to a blog post by Telcoin, the attacks occurred on December 25, 2023, when hackers exploited a vulnerability in the Telcoin app that allowed them to bypass the app’s security checks and access users’ private keys. The hackers then used the private keys to transfer TEL tokens from the affected wallets to their own addresses.

Telcoin said that the vulnerability was introduced in the app’s version 3.7.1, which was released on December 23, 2023. The company advised users to update their app to the latest version 3.7.2, which fixed the issue and added additional security measures.

Telcoin also said that it has contacted the relevant authorities and exchanges to track and freeze the stolen funds. The company estimated that the total amount of TEL tokens lost in the attacks was around 1.3 million USD, or about 0.8% of the total TEL supply.

TEL price plummets over 50% after the attacks

The news of the security breach had a devastating impact on the TEL price, which plummeted over 50% in a matter of hours. According to CoinGecko, TEL was trading at around $0.0047 before the attacks, but dropped to as low as $0.0022 after the attacks. The coin has since recovered slightly, but is still down by more than 40% from its pre-attack level.

TEL, which is an ERC-20 token powered by the Ethereum blockchain, is the native currency of the Telcoin platform. The platform leverages the existing mobile money infrastructure and blockchain technology to enable fast and affordable remittances, crypto trading, and other financial products and services.

TEL has a circulating supply of 73 billion tokens and a market capitalization of around 161 million USD, ranking it as the 240th largest cryptocurrency by market cap. The coin reached its all-time high of $0.0491 in May 2021, but has since lost more than 90% of its value.

Telcoin promises to compensate affected users

Despite the massive setback, Telcoin assured its users that it will compensate them for their losses and restore their trust in the platform. The company said that it will use its own funds and insurance coverage to reimburse the affected users in full.

Telcoin also apologized for the inconvenience and distress caused by the attacks and thanked its community for their support and patience. The company said that it will conduct a thorough investigation and review of its security protocols and procedures to prevent such incidents from happening again.

Telcoin also urged its users to follow the best practices for securing their wallets, such as using strong passwords, enabling biometric authentication, and keeping their app updated. The company also reminded its users to never share their private keys or recovery phrases with anyone, as they are the only way to access their funds.