diff --git a/chardev/char-socket.c b/chardev/char-socket.c
index 22f65971a1..8401aaed1a 100644
--- a/chardev/char-socket.c
+++ b/chardev/char-socket.c
@@ -592,19 +592,23 @@ static gboolean tcp_chr_telnet_init_io(QIOChannel *ioc,
             ret = 0;
         } else {
             tcp_chr_disconnect(init->chr);
-            return FALSE;
+            goto end;
         }
     }
     init->buflen -= ret;
 
     if (init->buflen == 0) {
         tcp_chr_connect(init->chr);
-        return FALSE;
+        goto end;
     }
 
     memmove(init->buf, init->buf + ret, init->buflen);
 
-    return TRUE;
+    return G_SOURCE_CONTINUE;
+
+end:
+    g_free(init);
+    return G_SOURCE_REMOVE;
 }
 
 static void tcp_chr_telnet_init(Chardev *chr)