Polymarket Suspends Operations After Security Breach and Millions in Losses

The prediction market platform Polymarket halted its trading activities on Thursday. The move followed reports from users regarding unauthorized withdrawals from their accounts. The company confirmed that one of its third-party vendors was the target of a cyberattack.

On-chain monitoring data reveals that the wallet linked to the incident holds approximately 2.65 million dollars in POL tokens. The attack involved converting USDC stablecoins into other assets through cross-chain exchange services. Total user losses reached this significant figure.

Preliminary investigations suggest that a malicious script was injected into the platform's website. The code targeted logged-in user sessions to sell positions and transfer funds without consent. Security experts identified that the script contained the attacker's wallet address as the destination for the funds.

Polymarket's system temporarily entered an order-cancellation mode. The company stated it has identified and fixed the technical flaw in its environment. Law enforcement authorities have been notified to investigate the case and the platform promised to reimburse affected users.

This incident reinforces the vulnerability of decentralized platforms to software supply chain attacks. The exposure of keys or code injection in third-party services can increase systemic risk for investors who use web interfaces to manage digital assets.