According to Foresight News, Telcoin has released a security incident update on platform X, stating that the root cause of the issue is not with the Telcoin wallet code itself, but with the proxy implementation of wallets on Polygon. The main wallets affected are those that have never initiated a transaction. The company has deployed a fix to prevent further exploitation and plans to restore all wallet balances to their previous amounts (all affected assets) before reopening app services.

Previously, on-chain monitor MetaScout discovered a series of targeted attacks against Telcoin wallets. As a result of these attacks, the price of Telcoin (TEL) plummeted by 65%, causing a loss of approximately $1.2 million.