Polygon Foundation Denies MATIC Dump on Binance, Claims Wallets Were Mislabeled

Blockchain Analytic Firm Flags Crypto Wallet Linked to Polygon Foundation

A blockchain analytic firm called Lookonchain has flagged a crypto wallet that it claims belongs to Polygon Foundation. The wallet allegedly transferred large amounts of Matic tokens onto the Binance exchange. However, Polygon Labs founder Sandeep Nailwal has refuted the claim, stating that it was a case of mislabeling and that the wallet does not belong to Polygon Foundation.

Denial from Polygon Labs

Responding to the claims made by Lookonchain, Nailwal expressed his frustration with the incorrect labeling and asked for caution when sharing such tweets. He believes that these false claims create unnecessary fears among the cryptocurrency community.

Lookonchain had flagged two wallets, labeled "Polygon Foundation: 0x8d36" and "Polygon Foundation: 0xf957." These wallets collectively deposited over $5.5 million worth of MATIC onto Binance over the past 30 days, with more than half of that amount deposited in the past two days.

Issue of Mislabeling

Polygon Labs CEO Marc Boiron was the first to highlight the issue of mislabeling. The blockchain analyst responded, stating that the wallets were actually labeled by another crypto analytic firm called Nansen.

Nansen defended its labeling process, explaining that they undergo a rigorous procedure before labeling wallets. They stated that the two wallets in question had shown strong links to key members of the Polygon community.

For instance, Nansen cited instances of interaction between Polygon Labs executives and one of the wallet addresses. They mentioned that Polygon Sanket, who leads growth at Polygon, had sent ETH to the mentioned address. The same address had also received tokens from private rounds Polygon had invested in.

Regarding the second wallet address, Nansen claimed that their "counterparties" included the previous address mentioned and other entities closely tied to Polygon, with the head of Investments being one example.

Removal of Label and Acknowledgement

However, Nansen concluded that since Polygon Labs' CEO publicly refuted the claims about these addresses' links to the firm, they would remove the label. Boiron thanked Nansen for taking this action, acknowledging that labeling wallets is not an easy task.

Polygon has not responded to Cointelegraph's requests for comments at this time.