• Sat. Apr 13th, 2024

Polygon Explains How Hackers Stole Over 800K MATIC Tokens From The Platform

Scott Wilson

ByScott Wilson

Dec 31, 2021

Polygon platform has revealed that it was hacked earlier this month but took care of the situation without users’ notice. However, it has come out to explain how the hack happened. Polygon falls among the list of recently hacked platforms that lost vast amounts of their governance tokens. The polygon hack is proof that any platform can be hacked regardless of the network’s security.

The Security Breach That Led To The Hack

The platform released a detailed blog post confirming that it was hacked and lost vast amounts of its MATIC tokens. The post explained that the team discovered the breach because a white hat hacker participating in its bug bounty initiative brought it to their notice. Even though it took immediate action to rectify the breach through a collaborative effort with Immunefi, a hacker had quickly taken advantage of the breach to steal some MATIC tokens.

The hacker made away with a total of over 810K MATIC tokens even though they were siphoning the tokens in batches. Using the current price of the MATIC token, the hacker stole MATIC tokens valued at more than $2.3m. However, part of the blog post states that users won’t suffer the consequences of the hack as the polygon foundation will offset all costs associated with the theft.

Solving The Problem

Members of the polygon ecosystem were worried when the platform’s developers initiated a hard fork earlier this month. Many of them were left in the dark regarding the reason for the hard fork. The hard fork became necessary because the polygon team had discovered a breach in the platform’s security.

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However, the platform didn’t issue any official statement until now. The recent official blog post stated that the platform averted a monumental calamity through the concerted efforts of its security team, Immunefi, and the white hat hackers from its bug bounty initiative who made them aware of the breach.

The statement further read that the December 5 hard fork had helped resolve the problem. It also revealed that “the validators, full node communities, and core developers worked continuously for almost 24 hours till the network upgrade was almost 85% complete.” Polygon rewarded the white hat hackers who notified the network of the hack with about $3.5m. This reward amount would be inconsequential compared to the loss that was averted.

MATIC Price Action

The various timeframes and signals indicate that MATIC will find support at the $2.45 level over the near term. A further decline would mean that MATIC’s next support will be at $2.33, from which a bullish rice reversal might happen. However, the indicators didn’t indicate whether this bullish move will be sustained or a downtrend price movement will occur.

However, BTC price will be an essential factor determining MATIC’s price action in the next few days. Meanwhile, Coingecko data revealed that MATIC had gained nearly 35.5% in the last month despite a general downtrend on the broader crypto market since the beginning of this month.

Scott Wilson

Scott Wilson

Scott Wilson is a seasoned news writer and journalist known for his compelling storytelling and in-depth reporting. With a keen eye for detail and a dedication to accuracy, his articles provide readers with a well-rounded understanding of current events and their impact.

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