By Islam El-Sakka
Polymarket halted trading on its international platform Thursday for nearly an hour after a third-party vendor compromise led to reports of user wallet drains.
Third-party vendor compromised
The breach originated from DebugBear, a web analytics tool, according to a person familiar with the matter. DebugBear acknowledged an ongoing security incident around 2 p.m. ET. Hackers accessed funds via the compromised software.
User funds affected
Users on Polymarket's Discord reported drained wallets. The Block cited blockchain analysis group Arkham estimating $2.65 million in cryptocurrencies siphoned. Polymarket did not confirm the figure but pledged to reimburse all affected traders.
Platform response
Polymarket identified and fixed the issue, referring the matter to UK law enforcement. Trading resumed at 3 p.m. ET. The US-based platform was unaffected.
Company background
Polymarket, valued at $21 billion after a $1 billion investment led by Donald Trump Jr., processes about $200 million in daily trading. It faces regulatory disputes with US states and the Trump administration over prediction-market oversight. The platform is also investigating suspicious betting activity around Israel's elections and US midterms.
