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

Blockchain analytic firm Lookonchain flagged a crypto wallet allegedly belonging to the Polygon Foundation that transferred large amounts of MATIC (MATIC) tokens on Binance. Polygon Labs founder Sandeep Nailwal refuted the claim and said it was a case of mislabeling and that the wallet doesn’t belong to the Polygon Foundation.

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

MATIC deposited on Binance from the Polygon Foundation-labeled wallets. Source: Etherscan

Polygon Labs CEO Marc Boiron was the first to flag the issue of mislabelling, to which the blockchain analyst responded that the wallets were labeled by another crypto analytic firm, Nansen.

Nansen responded that it goes through a rigorous process before labeling such wallets and explained that these two wallets in question had shown strong links to key members of the Polygon Foundation.

Related: Polygon’s new open-source L2 chain developer stack to support Ethereum ZK-powered layer 2s

The firm cited key instances of interaction by Polygon Labs executives with the wallet address 0x8d365687a75dc7688864822869ae0551bb6fc105, where, in one instance, Polygon head of growth Sanket Shah had sent Ether (ETH) to the mentioned address, and the same address has received tokens from private rounds Polygon invested in, such as Hot Cross.

For the second wallet address, 0xf957fa14ea72a9ecd7bdc06c5be89a5a34c7aa89, Nansen claimed that its “counterparties consist of the previous address 0x8d3 and with other entities that are tied closely with Polygon with the head of Investments being one example.”

However, Nansen concluded that since Polygon Labs’ CEO has publicly refuted the claims about these address links to the firm, they are going to remove the label. Boiron thanked Nansen for removing the label and acknowledged that labeling wallets is not an easy task. Polygon didn’t respond to Cointelegraph’s requests for comments at the time of publication.

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