Polygon Bridge Holds $27 Million Worth of Unclaimed Crypto Tokens – Study
ZenGo’s new finding shows that an estimated $27 million in funds belonging to crypto users remain unclaimed on the Polygon Bridge. According to the study, the unclaimed funds might be due to the two-step authentication process for withdrawals on the bridge.
ZenGo says Polygon’s bridge allows users to transfer crypto tokens between the Ethereum and Polygon blockchains. Accordingly, when a user links from Ethereum to Polygon, a single transaction is all that is required.
However, when users need to move their assets to the Ethereum network from Polygon, they’ll need to wait an hour or more before claiming their tokens. This also happens in the subsequent transaction so that they can correctly withdraw their funds.
Furthermore, the crypto tracking platform noted that there are currently over 35,000 transfers that are still unmatched by successive claims. The transfers, according to ZenGo, represent close to $27 million in funds divided among ETH, USDT, and DAI.
Meanwhile, reports indicate that ZenGo had already shared its observations with the Polygon team before the recent publication. In response, the Polygon team arranged to make a claim transaction using the $2 million left by a user in unclaimed funds on the bridge.
According to Polygon, the said user had sent the coins back to the Ethereum part of the bridge in May 2022 without concluding the withdrawal procedure.
It is worth noting that anyone can process a claim transaction, but the funds will go to the owner of the tokens. In addition, whoever made the claim transaction will be the one to pay the cost.
The Forgotten Millions
Reacting to the incident, the CTO of ZenGo, Tal Be’ery, noted that it could be painful to imagine how one can “forget” millions of dollars. However, Be’ery added that ZenGo assumes this might be related to the issue of additional transaction requirements.
Hence, that might explain why the owner can’t claim these funds immediately. Meanwhile, many industry analysts believe that not all such funds are forgotten by the owners, as some might be in the process of being transferred to the Ethereum chain.
Similarly, Polygon’s Chief Information Security Officer, Mudit Gupta, echoed the same sentiment in a Twitter post. Gupta noted that token holders might have accidentally moved some of the funds to the Ethereum address, with the owners unable to recover them.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
