Polygon Foundation denies MATIC dump on Binance, claims wallets were mislabeled

Blockchain analytics firm Lookonchain has flagged a crypto wallet purportedly belonging to the Polygon Foundation that transferred a large amount of Matic tokens on Binance. Sandeep Nailwal, founder of Polygon Labs, refuted the claim, saying it was a case of mislabelling and that the wallet was not owned by the Polygon Foundation.

Again, wrong label @lookonchain. This is the second time this has happened.

Please be careful with these tweets, bringing unnecessary FUD to the community https://t.co/mVpaIYB9Xt

— Sandeep Nerwal | Sandeep. Polygon (@sandeepnailwal) September 7, 2023

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

*Matic is deposited into Binance from a wallet tokenized by the Polygon Foundation. Source: Etherscan*

Polygon Labs CEO Marc Boiron is the first banner The blockchain analyst responded that the wallets were tagged by another crypto analytics firm, Nansen.

Nansen responded They went through a rigorous process before labeling such wallets, explaining that the two wallets in question had close ties to key members of Polygon.

Related: Polygon’s New Open Source L2 Chain Developer Stack Enables Ethereum’s ZK-Driven Layer 2

The company cites key instances of Polygon Labs executives interacting with wallet address 0x8d365687a75dc7688864822869ae0551bb6fc105, one instance where a growth leader at Polygon Sanket had sent ETH to the aforementioned address, and the same address had received private placements such as Hot Cross from Polygon Investments round of tokens.

For the second wallet address: 0xf957fa14ea72a9ecd7bdc06c5be89a5a34c7aa89, Nansen claims that their “counterparties include the previous address 0x8d3 as well as other entities closely related to Polygon, the investment principal being an example.”

However, Nansen concluded that since Polygon Labs’ CEO had publicly refuted claims that the addresses were linked to the company, they would remove the label. Boiron thanked Nansen for removing the tag and acknowledged that tagging the wallet was not an easy task. Polygon had not responded to Cointelegraph’s request for comment by press time.

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