Polymarket Suspends Trading After Security Breach Drains $2.5 Million
Polymarket partially suspended trading after a security breach at third-party provider DebugBear led to over $2.5 million being drained from user accounts. The platform promised full refunds.
Prediction market platform Polymarket partially suspended trading on its website following reports from users that funds were withdrawn from their accounts, according to a report by the Wall Street Journal.
The root of the issue was a security breach at DebugBear, a performance monitoring service provider used by Polymarket, a person familiar with the matter said. According to the source, Polymarket has referred the case to law enforcement authorities in the United Kingdom, where DebugBear is based.
DebugBear's website was inaccessible, and the company did not immediately respond to a request for comment. Earlier, DebugBear posted a statement on X stating it was "impacted by an ongoing security incident" and advised clients using its RUM product to remove the embed code from their websites.
An analysis of digital wallet activity by the Wall Street Journal showed that a wallet belonging to the suspected attacker allegedly drained more than $2.5 million from Polymarket user accounts across more than 900 transactions.
In a statement, Polymarket said it had fixed an issue related to a third-party vendor and promised that traders who lost money would be fully reimbursed. The platform is currently operating in a cancel-only mode, and operations conducted via the Relayer service have been paused while the incident is investigated.
Meanwhile, trading continues on Polymarket regarding the identity of Israel's next prime minister, with total trading volume standing at approximately $80.6 million. Prime Minister Benjamin Netanyahu leads the table with a 46% probability and a trading volume of nearly $30 million. He is followed by Yashar! party chairman Gadi Eisenkot, trailing by 17 percentage points with a 29% probability and nearly $7.5 million in trading volume.
