Polymarket Pauses Trading as Prediction Market Investigates Security Incident
Summary
Polymarket paused relayer actions and limited trading to cancel-only mode after users reported unauthorized withdrawals. The platform said a third-party provider was compromised, the issue was fixed, law enforcement was notified, and affected users would be reimbursed. Researchers said malicious code in a performance-monitoring script appeared to target logged-in users’ positions and transfer assets to a hard-coded wallet. On-chain data showed the suspected wallet held about $2.65 million in POL. The cause and total number of affected users remained unknown. Polymarket had previously disclosed separate incidents involving a compromised key and a malicious third-party vendor.
