Crypto platform Telcoin has seemingly experienced a significant security breach, resulting in the apparent theft of millions of TEL tokens.

Although the nature of the exploit remains unclear, hackers have managed to withdraw millions of TEL tokens, nosediving the token’s price by 40% to $0.0013, according to CoinGecko data. In an X post on Dec. 26, Telcoin confirmed issues with its Telcoin App, without elaborating on the matter.

In response to the incident, the company has temporarily suspended the app’s usage to conduct a thorough investigation. The project’s team reassured users that they are working on resolving the issue, promising to provide updates as soon as possible.

According to blockchain analytics firm PeckShield, the number of losses reached the $1.3 million mark as the hacker apparently stole over $1.1 million worth of Polygon (MATIC) and more than $84,000 worth of Ethereum (ETH). As of press time, 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 populations. By integrating with existing mobile networks, Telcoin seeks to enable users to send and receive digital payments through their mobile devices using the TEL token.