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Polymarket pauses trading over security issue | The Paypers
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Polymarket briefly halts international trading after security incident
Polymarket has paused trading on its international platform after a security incident at a third-party provider, pledging to reimburse traders.
Trading was suspended for about an hour before resuming the same day. During the suspension, the international platform was placed in cancel-only mode, allowing users to cancel existing orders but not place new ones. The halt followed user reports that funds had been drained from some cryptocurrency wallets. According to Polymarket, it halted activity as a precaution after identifying and fixing the issue, which stemmed from a compromise at a third-party provider, and it has referred the incident to a law enforcement agency in the UK.
Reimbursement for affected traders
In a post on X after trading resumed, Polymarket said it would fully reimburse all affected traders and that anyone affected would be made whole. The company has not disclosed how many traders were affected or the value involved. Polymarket’s US platform was reportedly unaffected.
Independent estimates of the losses have emerged. Blockchain security firm GoPlus, which attributed the attack to a supply chain compromise of DebugBear’s real user monitoring script, puts losses at roughly USD 2.71 million. Polymarket has not confirmed this figure.
A compromised monitoring script
The incident has reportedly been linked to DebugBear, a UK-based provider of website performance-monitoring tools. DebugBear confirmed being affected by an ongoing security incident, said it was treating it as a top priority, and urged users of its real user monitoring (RUM) product to remove its snippet from their websites. The company also said it had brought in specialist cyber incident response support and would work directly with affected customers.
According to security firm Hudson Rock, a script loaded from DebugBear contained code that looked for logged-in trading sessions and tried to sell positions and move the assets. The firm also identified a Polymarket production build with a change note about removing the DebugBear script. GoPlus’s findings do not indicate that other DebugBear customers were targeted. The case shows how a compromised script from an external provider, once embedded on a platform’s website, can reach into users’ active sessions.
Keywords:prediction marketscybersecuritythird-party risksecurity incident
Countries:World
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