Hello, this is just an experiment of why Telnet isn't secure to use anymore. Telnet is transmitting all the data without encryption or in a plain text. We capture telnet traffic using Wireshark in this video to show you that your username, password and other data can be captured when you use Telnet to connect to your server.
In this video, in the telnet client we install Wireshark and Putty and put wireshark filter: tcp.dstport == 23 and ip.src_host == 192.168.43.157, basically this filter tells Wireshark to capture paket with tcp destination port of 23 and ip address source 192.168.43.157, i.e. capture telnet (port 23) traffic sent from Windows 8 to any computer.
As MITM person you can use the same Wireshark filter or use: tcp.dstport == 23 or tcp.srcport == 23
filter.
So the solution is you need not to use Telnet anymore or use it if you know the network is clean from hacker and block port 23 using firewall because hacker can connect and bruteforce you. You can also instal Faill2ban software on your Unix Machine.
As you can see, we need not to know the ip address of the client and the server in order to capture the data.