Crypto investments fund founder says Polygon is ‘highly insecure & centralized’
Cyber Capital Founder Justin Bons explained Polygon (MATIC) claims that it only takes five people to compromise over $2 billion in the ecosystem, claiming it is “extremely insecure and centralized.”
1/25) Polygon is still very insecure and centralized!
Just 5 People Can Compromise More Than $2 Billion
Four out of five people who add insult to injury are Polygon founders.
This is one of the biggest hacks waiting to happen.
Reckless and irresponsible, warning the wise:
— Justin Bonds (@Justin_Bons) August 15, 2022
Bons said in a Twitter thread on August 15th that the Layer 2 protocol is a hack waiting to happen due to 8-key multisig contracts.
According to Bons, it takes five keys to compromise the network, four of which are held by its founders. Porygon also chose the rest of the keychains.
Bons went on to say that whoever controls the keys can change the rules and do anything within the ecosystem, including an exit scam that can take all of Polygon’s $2 billion contract.
He also argued that Polygon is not transparent in its operations, making the network even more dangerous. He said:
“There may already be one person in control of the admin key! The use of admin keys requires, at a minimum, very high security standards.”
He said Defi Watch’s Chris Blec formally requested disclosure regarding admin keys in 2020, but the Polygon team denied the request.
This is a letter sent to Polygon that they call “abusive”. https://t.co/OynPAgETHz
— Chris Blec (@ChrisBlec) February 16, 2022
Bons also criticized Polygon’s transparency report, saying it only justified multisig and didn’t discuss operational security.
Bons recommended that Polygon be decentralized according to its governance state report.
He asked the founders to transfer control of smart contract management keys to the Polygon DAO, made up of people holding MATIC tokens.
“This will require a move to the new Polygon smart contracts, which is very difficult and expensive to do. is the price to pay.”
However, Twitter users criticized Bom as paid FUD drops the same info every 6 months. In his February, Bons released a similar thread addressed by the Polygon co-founder.
1) You are literally a paying idiot who drops the same thread every 6 months lol.
2) Polygon’s solution employs ETH security (zkEVM is a prime example).
3) Here’s a thread where Polygon himself talks about this.https://t.co/EW9mBt3lre— ⁴⁷ (@0xSigh) August 15, 2022
Co-founder at the time Mihailo Bjelic calms down Bonds’ concerns about multisig. According to Bjelic, Polygon is working to eliminate multisig and exit fraud is not a real problem for the protocol.
The use of 1/9 multisig has been covered many times. Mainly for beginners, let’s get to the point again.
TL;DR: Multisig is used to improve security, not to make it less secure. Polygon uses them responsibly and is working towards their removal. https://t.co/vSlSQUaRmX
—Mihailo Bjelic (@MihailoBjelic) February 14, 2022
Meanwhile, despite the issues raised by Bons, Ethereum-based Layer 2 networks continue to enjoy massive adoption and use by institutions.
