Blockchain analytics service Lookonchain recently reported movement suggesting that the Polygon Foundation has moved over 10.6million MATIC tokens to a Binance-tagged wallet.

The tokens are worth approximately $6 million USD at the point of writing.

Polygon however denies any involvement in the transaction.

Polygon Founder Denies Involvement

Sandeep Nailwal, the founder of Polygon Labs, took to X (formerly known as Twitter) to challenge Lookonchain's findings.

Nailwal asserted that the wallet addresses linked to the Foundation, which were allegedly moving tokens for sale on Binance, had been inaccurately labelled.

He stated:

One more time, incorrect labelling @lookonchain. This is the second time this has happened. Plz be careful about these tweets 🙏🏼, creates unnecessary FUDs for the community

According to the data provided, two specific wallet addresses, identified as "Polygon Foundation: 0x8d36" and "Polygon Foundation: 0xf957," deposited more than $5.5 million worth of $MATIC tokens on Binance in the past month, with a significant portion of these funds being transferred within the last 48 hours.

In response to concerns raised by Polygon Labs CEO Marc Boiron, Lookonchain disclosed that the wallet labels had originated from crypto analytics firm Nansen.

Nansen's Labelling Process the Bone of Contention

Nansen in turn defended its labeling process, highlighting strong connections between the two wallets and Polygon team members.

Every label attached to an address goes through a rigorous documentation process to ensure its accuracy

Here's why we concluded that these 2 addresses are linked to the Polygon Foundation:

Starting with: 0x8d365687a75dc7688864822869ae0551bb6fc105

1. @sourcex44 (leads growth at Polygon) has sent ETH here, presumably for gas purposes
2. The address received tokens from private rounds Polygon invested in such as Hot Cross

For the second address: 0xf957fa14ea72a9ecd7bdc06c5be89a5a34c7aa89

Their counterparties consist of the previous address 0x8d3 and with other entities that are tied closely with Polygon. Their head of Investments is one example

The evidence for both of these addresses shows a very strong link to various individuals and entities of the Polygon Foundation and that’s why we had labeled these addresses as part of the Polygon Foundation

Nansen has decided to retract the labels from the disputed wallets as a gesture of goodwill, following Boiron's public denial of any association between the wallets and the Polygon Foundation.