Prediction platform Polymarket restricted activity to order cancellations while launching an investigation after reports that funds had been transferred from users’ accounts without authorization.
According to Wu Blockchain, which reported the news on October 29, multiple users said unauthorized funds had been transferred from their accounts. Some users claimed to have lost hundreds of thousands of dollars. Reports raised suspicions that the platform’s user interface may have been compromised, but the cause of the transfers has not yet been confirmed.
Only order cancellations are allowed as investigation continues
Polymarket said it had put the platform in “cancel-only” mode during the investigation. In this mode, users can cancel existing orders but cannot place new ones. The platform also suspended the activity of relayer services, which route transactions.
Platform had pledged to cover losses from an earlier breach
Polymarket had previously disclosed that about $3 million in user funds was stolen due to a security breach at a third-party service provider. The platform said the vulnerability that led to that incident had been fixed and that affected users would be fully reimbursed.
As the cause of the new user reports is being investigated, the $3 million figure and reimbursement pledge in the earlier statement relate to the previously reported breach.
Not investment advice.