Polymarket temporarily halted trading on its international platform for nearly an hour after a compromise of third-party software Debug Bear was detected. The attack, which appeared to originate from the United Kingdom, led to unconfirmed reports of drained user wallets. Polymarket stated on X that "anyone who has been impacted will be made whole" and that it is fully reimbursing all affected traders.
Debug Bear confirmed an ongoing security incident. Blockchain analysis group Arkham reported approximately $2.65 million in cryptocurrency was siphoned from users' wallets. Polymarket's U.S.-based platform was not affected.
Trading resumed at 3 p.m. ET after the issue was identified and fixed. The company referred the matter to British law enforcement. Polymarket, valued at $21 billion after a $1 billion investment led by Donald Trump Jr., processes about $200 million daily in trading activity.
The platform faces regulatory battles with U.S. states and the Trump administration over prediction-market betting regulation.
Source: Hacker News · Summarized by HeadlinesBriefing