Home News Polygon upgrade quietly fixes bug that put $24B of MATIC at risk

Polygon upgrade quietly fixes bug that put $24B of MATIC at risk

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Layer 2 scaling network based on Ethereum. Polygon has discreetly patched a flaw that put its native token, MATIC, at risk of losing nearly $24 billion in value.

In fact, according to a Polygon blog post published on Wednesday, two whitehat hackers discovered the “serious” flaw in the network’s proof-of-stake Genesis contract via blockchain security and bug bounty hosting platform Immunefi on December 3 and 4.

The flaw exposed around 9.27 billion MATIC tokens, worth around $23.6 billion at the time of writing, accounting for the vast majority of the token’s total supply of 10 billion.

However, the flaw fixed at block 22,156,660 on the mainnet via an “Emergency Bor Upgrade” on December 5 at 7:27 a.m. UTC, according to Polygon. Before the problem was fixed, the network said that a “malicious hacker” stole 801,601 MATIC ($2.04 million). According to the article on the blog:

“Polygon’s core team immediately began working with the group and Immunefi’s speciality team to devise a solution. The communities of validators and complete nodes were contacted. They rallied around the core developers to upgrade 80% of the network in less than 24 hours with no disruptions.”

The defect resolved behind closed doors

The problem resolved behind closed doors, according to Polygon. In accordance with the Go Ethereum team’s “silent patches” strategy, which implemented in November 2020. To avoid facing exploitation at the time of patching, the standards require projects or developers to notify major issue fixes four to eight weeks after they go live.

Besides, Whitehat hacker “Leon Spacewalker,” according to Immunefi, was the first to report the security flaw on December 3rd. And will earn $2.2 million in stablecoins in exchange for their work. While Polygon will award 500,000 MATIC ($1.27 million) to the second anonymous hacker, dubbed “Whitehat2”.

Jaynti Kanani, a co-founder of Polygon, praised the network’s capacity to quickly fix the significant flaw in a blog post, writing:

“It’s important to remember that this was a test of the resiliency of our network. As well as our ability to make quick decisions when under duress. Given the stakes, I am confident that our team took the best decisions possible.”

Despite the recent decline in major cryptocurrencies this month, MATIC is currently trading at $2.45. And has gained 35.1% in the last 30 days, according to CoinGecko.

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