Polymarket put its exchange into cancel-only mode and paused relayer actions after users reported funds leaving their accounts without permission. The platform’s status page showed the trading API in a major outage.
Polymarket said one of its third-party providers was compromised, that it has referred the matter to law enforcement and that affected users will be made whole. It has not explained what caused the incident.
Security firm Hudson Rock said a script loaded from DebugBear, a web performance monitoring service, contains code that looks for a logged-in user’s trading session and tries to sell positions and transfer assets. According to Arkham data, a suspected attacker wallet held about $2.65 million in POL after several USDC.e-to-POL swaps through Relay. Hudson Rock has not established how the compromise began or how many users were affected.
This is not the first vendor-related problem for the platform. Decrypt recalled a private-key compromise in May that drained about $700,000 from an internal top-up wallet, and a later vendor compromise that let attackers inject code into the frontend and steal about $3 million from fewer than 15 accounts.
Users should review their account activity until Polymarket confirms that trading is safe again.
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