Polygon, a Layer-2 scaling solution of the Ethereum blockchain network, has lost over $2 million in MATIC tokens as a result of exploiting a critical network vulnerability. According to a blog post, the vulnerability has already been fixed and the remaining tokens are safe.
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The critical vulnerability was first discovered by two white hackers in early December. It has exposed over 9.27 billion MATIC tokens at risk for a total value of $23.6 billion at current prices.
"A group of whitehat hackers notified Immunefi, which hosts our bug bounty, of a vulnerability in the Polygon PoS genesis contract on Dec. 3," the company said in a blog post.
Having updated the network, Polygon paid a total of about $3.46 million as bounty to two white hats who helped discover the bug. However, despite efforts, a "malicious hacker" was able to use the exploit to steal 801,601 MATIC before the network upgrade took effect. Polygon said the foundation will bear the cost of the theft.
Earlier in December, Polygon rolled out a testnet implementation of EIP-1559 to introduce burning of its native MATIC token. The company said in a blog post that the upgrade will eventually will have a deflationary effect.
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