Polygon Foundation Faces 400M MATIC Misappropriation Claims

Polygon Foundation is accused of misappropriating funds and dumping on holders.

Head and hand of a man popping out of floating Polygon logos refuting something.
Created by Gabor Kovacs from DailyCoin
  • Polygon Foundation has been accused of misappropriating MATIC.
  • In addition to misappropriation claims, the entity is accused of dumping its MATIC holding on the community.
  • The questionable transfers occurred over four years.

Recently, the Polygon ecosystem has increasingly been at the center of controversy. In the latest instance, the activities of the Polygon Foundation have come under the microscope.

The entity tasked with supporting Polygon research, development, and education stands accused of misappropriating millions of MATIC and dumping millions more on holders.

Polygon (MATIC) Token Allocation Questioned 

According to a Monday, January 15 report from crypto intelligence firm ChainArgos, the Polygon Foundation has diverted 400 million MATIC meant to reward stakers per the project’s original tokenomics to Binance.

Per the Polygon project’s tokenomics, 1.2 billion MATIC (12% of the total MATIC supply) should be allocated for staking rewards by the Polygon Foundation. ChainArgos, however, claims that only about 800M tokens were ever sent to the Polygon staking contract by the Polygon Foundation.

According to the blockchain intelligence firm, the remaining 400 million MATIC was sent to a Binance address labeled “Binance 33.” From there, 300 million MATIC was sent to a wallet starting “0x2f4ee,” which also received 437 million MATIC from a wallet labeled “Matic: Marketing & Ecosystem.” 

As highlighted by ChainArgos, the 737 million sum has all been sent to Binance, with the firm suggesting that these transfers coincided with market tops and happened with help from Binance.

DailyCoin confirmed that these transactions occurred between April 24, 2019, and June 28, 2023, using Etherscan data. However, neither the Polygon Foundation nor Binance has returned a DailyCoin request for comment on the allegations or provided insight on the purpose of the 400 million MATIC sent to Binance 33 in April 2019.

On the Flipside 

  • In September 2023, Polygon executives refuted ties to a Nansen-labeled Polygon Foundation address that had raised eyebrows by sending 6 million MATIC to Binance.

Why This Matters 

ChainArgos’ allegations against the Polygon Foundation could erode trust in the ecosystem’s leadership and disincentivize network participation.

Read this to learn more about another Polygon controversy:
Polygon (MATIC) Activity Sparks Stat Padding Speculation

Learn more about the newly launched Polygon zkEVM grant:
Polygon zkEVM Turns to Grants to Lure Builders in DeFi Push

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.