Polygon Foundation Wallet Controversy

Polygon Foundation Wallet Controversy

Polygon Foundation Wallet Controversy

Lookonchain, a blockchain analytics company, identified a crypto wallet allegedly belonging to the Polygon Foundation that transferred substantial amounts of Matic tokens to Binance.

The founder of Polygon Labs, Sandeep Nailwal, refuted the allegation, stating that the wallet does not belong to the Polygon Foundation due to a mislabeling error.

Lookonchain identified two wallets, “Polygon Foundation: 0x8d36” and “Polygon Foundation: 0xf957,” that collectively deposited over $5.5 million worth of MATIC onto Binance in the past 30 days, with more than half of the amount transferred in the last two days.

Polygon Foundation Wallet Controversy

Matic deposited on Binance from Polygon Foundation labeled wallets. Source: Etherscan

The chief executive officer of Polygon Labs, Marc Boiron, was the first to raise the issue of mislabeling, to which the blockchain analyst responded that the purses were labeled by a different crypto-analytics firm, Nansen.

Nansen responded that a rigorous process is followed before labeling such wallets and explained that the two wallets in issue had demonstrated strong ties to key Polygon members.

The company cited key instances of interaction between Polygon Labs executives and the wallet address 0x8d365687a75dc7688864822869ae0551bcc105, including one in which a Polygon Labs executive who heads growth communicated with the wallet address.

Sanket had sent ETH to the given address, and the same address has received tokens from private rounds in which Polygon participated, including Hot Cross.

For the second wallet address, 0xf957fa14ea72a9ecd7bdc06c5be89a5be34c7aa89, Nansen claimed that their “counterparties consist of the previous wallet address, 0x8d3, and other entities closely associated with Polygon, such as the head of investments.”

However, Nansen surmised that the label would be removed because Polygon Labs’ CEO has publicly refuted the claims that these addresses are associated with the company. Boiron complimented Nansen for removing the label and admitted that labeling wallets is difficult.

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