Telcoin Restores User Balances After $1.2M Exploit, Witnesses 400% Surge in Deposits
In Brief
Telcoin restored all user balances within a few weeks following an exploit that led to the loss of $1.2 million worth of funds from users’ accounts.
Decentralized financial platform Telcoin successfully restored all user balances within a few weeks following an exploit that led to the transfer of $1.2 million worth of funds from users’ accounts.
In reaction to the security breach, Telcoin took proactive measures by preemptively restoring funds from the company’s treasury. Concurrently, the company collaborated with blockchain security experts and law enforcement to freeze and recover the stolen funds.
Meanwhile, there was a substantial increase in deposits as the quick resolution improved bullish sentiment among users. On the first day after the restoration of Telcoin App services, the company observed a remarkable 400 percent increase in deposits compared to the previous month, with a deposit-to-withdrawal ratio of $3.60 deposited for every $1 withdrawn.
Telcoin, a developer of financial applications, including trading and remittance tools for mobile users, was exploited in late December. The incident was attributed to an apparent error related to a wallet implementation on Polygon, resulting in a decline in user balances within the Telcoin mobile application.
The issue occurred due to a fault in the interaction between Telcoin’s digital wallet and a proxy contract. The proxy inaccurately performed specific storage functions, resulting in a technical conflict that enabled the withdrawal of assets. Notably, no admin keys were compromised, ensuring that the broader Telcoin ecosystem remained unaffected by the exploit.
Challenging Cybersecurity Landscape
In the cybersecurity domain, 2023 saw an increase in sophisticated and impactful cyberattacks, prompting organizations and individuals to contend with the repercussions of persistent digital threats.
Among the notable incidents, there were several high-profile cyberattacks and significant cryptocurrency thefts, including the breach against Euler Finance, resulting in hackers absconding with nearly $200 million, attacks on Multichain leading to a loss of $126 million, and the Poloniex hacker attack, which resulted in the theft of $114 million in funds.
However, research conducted by TRM Labs indicates a notable decrease of over half in cryptocurrency hack volumes in 2023, compared to the preceding year, suggesting that heightened security measures and increased law enforcement scrutiny have yielded positive outcomes. As the industry progresses into 2024, the company highlights vigilance and adaptability as key, especially against the backdrop of emerging new sophisticated threats.
In the aftermath of a $1.2 million exploit, Telcoin swiftly restored user balances, demonstrating resilience and proactive measures. The company’s success story stands out amidst the 2023 cybersecurity landscape, marked by devastating attacks and cryptocurrency thefts.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
