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Polymarket suspends trading after $2.65 million security breach
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Polymarket suspends trading after $2.65 million security breach

Oct 29, 2026

On October 29, 2026, prediction market Polymarket suspended international trading for one hour following a security breach involving third-party vendor DebugBear. Malicious code served via DebugBear's network hijacked user sessions and drained $2.7 million from 726 wallets. Polymarket committed $3.9 million to repay stolen funds and trading pause losses, fully reimbursing 689 accounts by October 30. The incident marks Polymarket's second vendor-related breach since June 2026.

Trading pause and platform operational response

  • ▪Polymarket temporarily halted trading on its international platform for approximately one hour
  • ▪During the October 29, 2026 trading halt, Polymarket placed its platform into cancel-only mode, allowing users to cancel orders while blocking new trades

Security breach mechanism and execution

  • ▪Prediction market platform Polymarket suffered a security breach impacting its international platform
  • ▪Report URI's Scott Helme said the October 29, 2026 security breach involved compromised web-monitoring vendor DebugBear, which served a malicious script from its content delivery network

Reimbursement pledges and identity check requirements

  • ▪Polymarket drew pushback for requiring larger theft victims to complete identity checks, release agreements, and non-disparagement clauses to receive reimbursements
  • ▪As of October 30, 2026, Polymarket had fully repaid 689 of 726 affected user wallets, with the remaining 37 awaiting verification
  • ▪Polymarket pledged $3.9 million total to reimburse $2.7 million in stolen user funds and $1.19 million in losses tied to Polymarket's trading pause

Previous vendor attack in June 2026

  • ▪Polymarket's October 29, 2026 security breach marked Polymarket's second major vendor-related security breach in four months, following a June 25, 2026 attack that drained roughly $3 million
  • ▪The security breach at Polymarket was executed via a compromised third-party marketing tag that injected code targeting wallets holding over $100,000

5 sources

Bankless
Polymarket Sends $3.9M Back to Traders After Vendor Script Drain
View source article
The Wall Street Journal
content frame
View source article
CryptoSlate
Polymarket suffers second multimillion-dollar security breach in just four months
View source article
The Washington Post
Polymarket pauses international trading after outside vendor’s security issue
View source article
Bloomberg
Polymarket Stops Trades Following Security Breach, Cites User Losses
View source article

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Onchain prediction marketsCrypto securityCrypto hacksCrypto prediction marketsWallet & key compromise