Polygon is grappling with a significant security breach just weeks before a major network upgrade. The official community Discord channel was compromised, leading to potential risks for users interacting with the platform. Moreover, hackers are promoting phishing links on the channel ahead the MATIC to POL migration.

Polygon Discord Channel Faces Hack

Mudit Gupta, the Chief Information Security Officer (CISO) at Polygon Labs, took to X (formerly Twitter) to alert the community about the breach. “PSA: Do not click on any links in the Polygon community discord until further notice. It has been compromised and we’re trying to get back ownership,” Gupta warned. Furthermore, the hack poses a considerable threat, especially given the platform’s upcoming token migration.

Moreover, Polygon co-founder Sandeep Nailwal reiterated Gupta’s warning, urging users to avoid any suspicious links. As the investigation continues into the breach, Gupta acknowledged the uncertainty surrounding the attack’s origins.

He spotlighted that the breach took place despite a Two Factor Authorization (2FA). In a comment, crypto sleuth SomaXBT queried about the cause of the latest Discord channel hack. Gupta responded, “Not yet, all of our privileged accounts had 2FA.”

The timing of the breach is particularly concerning, as Polygon is on the cusp of a significant upgrade: the migration from MATIC to POL tokens. The attackers seem to be exploiting the heightened interest in this migration to promote phishing links on the compromised Discord channel.

Hence, these phishing links are disguised as fake POL airdrop announcements. This targets unsuspecting users eager to participate in the migration. Currently, the full extent of the damage is still unclear, with no official figures on the number of victims or the estimated financial loss.

A Look At MATIC To POL migration

The token migration is scheduled for September 4. The transition from MATIC to POL is a community-driven upgrade first proposed last year. According to Polygon’s announcement, POL will replace MATIC as the gas and staking token for the PoS chain.

The upgrade is set to occur in phases. Initially, the migration will focus on swapping MATIC for POL on the PoS chain. This will be followed by the launch of the Staking Layer and the migration of Polygon’s public chains to leverage this new layer. The POL token’s utility will also expand, playing a crucial role in the forthcoming AggLayer.

In terms of the migration process, the Layer 2 network assured users that MATIC holders on Polygon PoS and those staking MATIC on Ethereum need not take any action. However, MATIC holders on the Ethereum chain, Polygon zkEVM, and centralized exchanges (CEXes) will need to migrate their tokens. To facilitate this, the team launched a testnet migration on July 17.

Despite the security breach, MATIC has shown resilience in the market. The MATIC price is currently above $0.50. Moreover, this notes a positive trend that could pave the way for it to retest the $0.55 level, as reported by Coingape earlier.

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Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.