Polymarket halts trading after breach, pledges compensation
6.8 Security Polymarket suspended trading after a third-party breach led to losses up to $2.68M. The issue was resolved in an hour, and the platform promised full user compensation.
On October 29, Polymarket faced a major security breach when users reported unauthorized withdrawals from their accounts. In response, the platform suspended trading and paused relayer actions after discovering that a third-party provider had been compromised. Traders reported losses ranging from $800,000 to $2.68 million, with some sources citing a total of $1.4 million, though these amounts have not been independently verified. Polymarket confirmed the incident, resolved the issue within an hour, and assured users that all affected accounts would be compensated. Security researchers identified a malicious JavaScript file used to drain wallets, but found no evidence of private keys or passwords being stolen. Trading was gradually restored, and Polymarket reaffirmed its commitment to user security and transparency, promising to implement further safeguards against future breaches.
