Telcoin (TEL) Price Drops 37% Following $1.3 Million Exploit

The decentralized finance (DeFi) platform Telcoin suffers from a $1.3 million exploit due to the issues with the proxy implementation of the wallet on Polygon.

Despite the holiday season, the bad actors refuse to take a break. In 2023, bad actors stole over $1.7 billion worth of crypto assets. And the rampage has continued throughout the past month.

Telcoin Promises to Restore The Wallets of Exploit Victims

Telcoin posted on X (Twitter) to update the users that they have deployed a fix to stop hackers from further exploiting the funds. It claims that the root cause of the exploit was not due to the Telcoin wallet code, but the issue was with the “proxy implementation of the wallet on Polygon.”

Furthermore, Telcoin wrote;

“We plan to restore all wallets to their previous balances (for all affected assets) prior to turning the app service back on, which may take some time. No keys, backend systems, or user data were breached. We will provide another update soon and appreciate everyone’s patience and support.”

Read more: Crypto Project Security: A Guide to Early Threat Detection

The blockchain security firm PeckShield estimates that the hackers stole around $1.3 million worth of crypto due to the exploit. The screenshot below shows that the price of TEL has dropped by nearly 37% in the past 24 hours.

Telcoin (TEL) Price. Source: BeInCrypto

Rug Pull: PIKE Drops to 0

Also on Tuesday, PeckShield posted about a rug pull token, Pike Finance (PIKE), that dropped by almost 100% in less than a minute. The scammers swapped 220 trillion PIKE tokens for 23.5 Ethereum (ETH), approximately worth $52,600.

Similarly, on Monday, a scam token – ORDEX plummeted to zero, causing an approximate loss of over $70,000. Such incidents mostly occur on tokens with low liquidity and market capitalization.

PIKE/USD, Uniswap, 1-minute Timeframe. Source: CoinMarketCap/TradingView

Read more: What Is a Rug Pull? A Guide to the Web3 Scam

Do you have anything to say about the Telcoin exploit or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto platforms | January 2024

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