http://telegram.org/img/key_image.jpg
I wager that if they did allow a tampering eavesdropper in their bounty contest, it would be in the same conversation that has already done a key exchange and verification, making it yet more snake oil. You can hardly call something secure when you don't allow real-world MITM attacks in testing.
There are only 4 possible colors per cell. You just describe it like 0,1,2,3,2,0, etc Just as if you were reading off the real key.
Uh, 4^(8*8)=2^128 is a pretty large number.
So, any system that claims to be secure must factor in MitM.
More information on this, and how easy it is to trick devices can be found at Troy Hunts website [0] and at Wifi Pineapple [1]
[0]: http://www.troyhunt.com/2013/04/the-beginners-guide-to-break... [1]: https://wifipineapple.com/
His posts are very well written and understandable, even for non pros (with a pinch of sarcasm, but that's how I like it). So, where exactly is he trolling?