Polymarket said a third-party service provider was compromised in an incident that resulted in losses of more than $2.6 million within minutes, and that it identified and fixed the source of the issue.
According to The Block, the prediction platform shared new information about the cause of the incident after users reported unauthorized transfers and trading was restricted. Polymarket said one of its service providers had been compromised and that it had referred the matter to the relevant law enforcement authorities.
Platform says issue has been resolved
During the initial phase of its investigation, Polymarket had placed the platform in cancellation-only mode. During this period, existing orders could be canceled, but new orders and trades were not being processed. Relayer services that routed transactions were also paused.
The company later said it had identified and fixed the source of the issue. That statement did not say whether trading had resumed.
$2.65 million in POL found in suspicious wallet
Arkham data showed approximately $2.65 million worth of POL in a wallet believed to be linked to the attacker. Multiple USDC.e–POL swaps via Relay were observed in the wallet, and the funds were later moved to different addresses.
The platform’s statement about the provider breach and on-chain fund movements have now added to user reports from the initial phase of the incident. Polymarket said it had reported the breach to the relevant law enforcement authorities, and the investigation is ongoing.
Not investment advice.