Ethereum scaling protocol Polygon disclosed that they were at risk of losing $24 billion of their MATIC tokens until they updated their network earlier this month. I guess… thanks for letting us know?

Some background: Polygon is an L2 Ethereum protocol, meaning it’s a separate blockchain that processes blocks of transactions on Ethereum.

• L2 protocols offer lower gas fees and faster transaction times, but still rely on Ethereum’s decentralized infrastructure.

The bug: The vulnerability was first reported through a bug bounty program by a whitehat hacker named Leon Spacewalker.

• Polygon’s team moved quickly to update the network, but before they could, a hacker exploited the bug and stole $2 million in tokens.

Polygon watchers noticed an unannounced hard fork and social media was buzzing with speculation over the cause, prompting the team to explain what had happened.

In the end, Polygon quickly resolved the bug and the whitehat hacker who discovered it was rewarded with $3.46 million worth of crypto — well deserved, if you ask us.

Zoom out: Polygon is one of the most reputable and widely used protocols, so it’s a good reminder that we’re still early in web3 days and major hacks should be expected. Invest accordingly.