Polymarket Halts Trading After User Losses from Third-Party Breach
Written with artificial intelligence.
Polymarket has suspended trading following a breach of a third-party provider that led to significant user losses. Approximately $2.7 million worth of assets were reportedly withdrawn without user consent, prompting the platform to freeze operations.
Trading Suspension
Polymarket, a prediction market platform, announced the suspension of trading after a breach involving one of its third-party providers. Users reported unauthorized withdrawals from their accounts on the platform's international venue, which prompted a swift response from the company.
Breach Details
The breach was confirmed following user reports on X (formerly Twitter), leading to investigations and communications with law enforcement. Polymarket stated that they have addressed the issue impacting their international platform and are committed to compensating affected users.
Financial Impact
This incident marks the second significant breach affecting Polymarket users in recent months. In June, a prior breach involving another third-party vendor resulted in approximately $3 million in losses. The latest breach has resulted in around $2.7 million in tracked losses, according to DeFi Llama.
Polymarket's trading operations will remain suspended until further notice as the company works to ensure user security and resolve the current situation.