The Polygon Foundation has firmly denied any involvement in the large MATIC token transactions on Binance that had raised eyebrows.
Initial Flagging by Lookonchain
Blockchain analytics firm Lookonchain initially raised concerns regarding a crypto wallet allegedly associated with the Polygon Foundation. This wallet had conducted significant transactions involving MATIC tokens on the Binance exchange. The transactions totaled over $5.5 million in the last 30 days, with more than half of this amount being deposited in the past two days.
Polygon Labs’ Founder’s Disputes and The Role of Nansen in Wallet Labeling
Sandeep Nailwal, the founder of Polygon Labs, swiftly dismissed these claims, asserting that it was a case of mislabeling, and the wallet in question did not belong to the Polygon Foundation. He emphasized the need for accuracy in such matters.
A significant revelation came when it was revealed that the wallets in question had been labeled by another crypto analytics firm, Nansen. This introduced a layer of complexity to the situation.
Nansen defended its labeling process, stating that it undergoes a rigorous evaluation before assigning labels to wallets. In this case, Nansen had found strong connections between these wallets and key members of the Polygon Foundation.
Instances of Interaction
To support their claim, Nansen pointed to specific instances of interaction between Polygon Labs executives and one of the labeled wallet addresses, 0x8d365687a75dc7688864822869ae0551bb6fc105. Notably, Polygon’s head of growth, Sanket Shah, had sent Ether to this address. Additionally, the same address had received tokens from private rounds in which Polygon had invested, including Hot Cross.
Connections to Key Entities; Resolution and Acknowledgment
Regarding the second labeled wallet address, 0xf957fa14ea72a9ecd7bdc06c5be89a5a34c7aa89, Nansen claimed that it had connections to the previous address, 0x8d3, and other entities closely tied to Polygon. They highlighted the head of Investments as one such example.
In light of Polygon Labs’ CEO’s public refutation of the claims connecting the labeled addresses to the Polygon Foundation, Nansen decided to remove the labels. Marc Boiron, CEO of Polygon Labs, expressed gratitude to Nansen for their prompt action and acknowledged the complexity of labeling wallets in the crypto space.
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