Polymarket has paused trading after reports of unauthorized fund withdrawals from user accounts, linked to a security breach involving a third-party provider.
Security Incident Leads to Trading Suspension
Polymarket has temporarily suspended trading on its platform after users reported unauthorized withdrawals from their accounts. The prediction market is currently in a cancel-only mode, allowing traders to cancel existing orders but preventing new ones from being placed.
Reports indicate that a wallet associated with the suspected attacker holds approximately $2.65 million in POL, the native token of Polygon. This wallet has been linked to multiple transactions converting USDC.e to POL through a cross-chain service called Relay.
A trader, known on X as CarOnPolymarket, warned other users to secure their accounts after losing $800,000, while a friend reportedly lost $600,000. “Please be careful, don’t interact with the site,” he urged.
If you are a Polymarket user, lock down your account. I just got drained $800,000. Other accounts are also affected. Friend got drained $600k. Please be careful dont interact with the site.
— Car (@CarOnPolymarket) October 29, 2026
In response to the incident, Polymarket confirmed that a third-party provider had been compromised and stated that they are working with law enforcement to investigate the breach. The company reassured affected users that they would be compensated for their losses.
Research from Hudson Rock indicates that the vulnerability may be linked to a script hosted by DebugBear, which contains malicious code capable of draining user wallets. The script is designed to target logged-in users by selling their positions and transferring their assets to the attacker's wallet.
This breach follows a series of previous security incidents at Polymarket, including a significant compromise in May that resulted in a loss of around $700,000 and another in June that involved a third-party vendor allowing hackers to steal approximately $3 million from users. In those cases, Polymarket pledged to refund affected customers in full.
