Highlights:
- Polygon’s Discord was hacked, leading to warnings about malicious links.
- ValidatorK lost $150,000 in Ether after clicking a fake announcement.
- Polygon’s MATIC token remains strong despite the breach with the upcoming POL upgrade.
Blockchain platform Polygon reported that its Discord community channel had been hacked, sparking concerns among users. On August 24, Polygon’s Chief Information Security Officer, Mudit Gupta, confirmed the breach on X and advised users to avoid clicking any links shared in the Discord channel until the situation is fully resolved.
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PSA: Do not click on any links in the @0xPolygon community discord until further notice.
It has been compromised and we're trying to get back ownership.
— Mudit Gupta (@Mudit__Gupta) August 24, 2024
This incident has raised concerns about security measures despite Gupta’s assurance that all privileged accounts were protected with two-factor authentication (2FA). Several users quickly took to social media to warn others about the scam. Some reported that scammers posed as support agents to deceive those seeking help. The user reported being blocked after attempting to warn the community, which made it more difficult to manage the situation.
The severity of the attack became clear when ValidatorK reported losing $150,000 worth of Ether (ETH). This happened after the user clicked on what appeared to be an official announcement on the hacked Discord server.
@0xPolygon I lost $150,000 of my Ethereum pool in one go through Polygon's official Discord announcement. Why haven't you officially posted the Discord hacking issue on X? How are you going to take responsibility for this?
— Mr.K (@ValidatorK) August 24, 2024
Despite the security breach, MATIC has remained resilient in the market, with its price currently above $0.53. This positive trend suggests it may soon retest the $0.55 level.
Polygon Faces Breach Ahead MATIC to POL Migration
The breach is especially alarming for Polygon, as it occurs during a critical network upgrade. As part of the upgrade, which is scheduled for Sept. 4, the platform plans to replace its native Polygon MATIC token with POL tokens. The POL upgrade aims to enhance the utility of Polygon’s native token and support its expanding network of aggregated blockchains called AggLayer.
The POL upgrade was first launched on the Polygon testnet on July 17, giving the community about six weeks to identify and address any issues before the mainnet migration. In the initial phase, POL tokens will replace MATIC as the native gas and staking token for Polygon’s Proof of Stake network. Current community consensus suggests that POL will play a broader role in the upcoming Polygon staking hub in 2025, supporting block generation, zero-knowledge proof creation, and involvement in Data Availability Committees (DACs).
Rise in Cryptocurrency Discord Hacks
This isn’t the first time a cryptocurrency-related Discord server has been hacked. On March 25, 2023, blockchain security firm CertiK reported a phishing scam on the Arbitrum Discord server. The scam likely carried out via a compromised developer account, featured a fraudulent announcement with a malicious link. The phishing message on Discord claimed to offer an “opportunity to re-claim an additional stake in Arbitrum DAO Governance” while citing issues during the initial token claim drive. However, the URL provided misspelled Arbitrum as “Arbtirum,” a common tactic in phishing attacks.
We found 2 super airdrop hunters of $ARB.
0xe1e2 received 1.4M $ARB($1.92M) via 866 addresses and added all 1.4M $ARB to #Uniswap to provide liquidity.https://t.co/sncsZTHrP2
0xbd4e received 933,375 $ARB($1.28M) via 630 addresses.https://t.co/p5vbqXMYxD pic.twitter.com/yK3LzbeC8t
— Lookonchain (@lookonchain) March 24, 2023
Similarly, on May 5, the Gnus.AI network was exploited via Discord, leading to a loss of approximately $1.27 million. The team announced plans to release a new Genius (GNUS) token version and advised users to avoid purchasing the old version. Gnus.AI is a blockchain network that enables users to conduct AI computations in exchange for tokens.
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