Polymarket Hack Losses Rise to $3.1 Million Amid Refund Promises

Scrutiny Intensifies Over Polymarket's Security Practices and Marketing Claims

Polymarket, a prediction markets platform, has confirmed that losses from a recent hack have escalated to approximately $3.1 million in its PUSD token. The breach involved the theft of funds from 11 user wallets, with the assets originally taken from the Polygon network and subsequently transferred to Ethereum.

According to blockchain analytics firm AMLBot, this incident stems from a compromised third-party vendor that infected Polymarket's frontend with a malicious script. In response, the platform has vowed to issue full refunds to affected users. A message posted on X stated, "We've contained it and removed the affected dependency. We're contacting impacted users and refunding them in full."

Earlier assessments had estimated the stolen amount at 1,893 ETH, with further monitoring revealing that losses were slightly adjusted to about $2.94 million as reported by another blockchain intelligence company, Specter Analyst.

This security breach comes on the heels of previous incidents, highlighting Polymarket's ongoing challenges with safeguarding user information. In March, the platform was involved in a separate breach that allegedly saw over $520,000 drained from smart contracts. Additionally, a previous security issue last December raised concerns when users reported unauthorized access on its Discord channel.

The recent hack is further complicated by reports indicating that Polymarket is under federal investigation for suspected misleading advertising practices on social media related to user winnings, as noted by the Wall Street Journal. As scrutiny around both security and marketing practices increases, the company is working to regain the trust of its user base.