The decentralized prediction market platform Polymarket has confirmed that many users have been affected by a security incident related to a third-party validation provider.
Reports of hacked accounts began appearing earlier this week on X and Reddit, as users took to social media to Chia about losing money from their accounts.
A user wrote on Reddit that they saw three suspicious logins to Polymarket, even though their device wasn't infected with malware, Google didn't detect anything unusual, and other services remained secure. Upon logging into Polymarket, they discovered all their positions had been closed and their balance was only $0.01.
Another person reported a similar situation: receiving numerous login warnings, and then having all the money withdrawn from their account, even though they hadn't clicked on any suspicious links and had enabled two-factor authentication for their email.
According to reports on social media, the incident appears to primarily affect users who registered with Polymarket through Magic Labs – a service that allows login via email and automatically creates a non-custodial Ethereum wallet. This method is often chosen by new crypto users who do not yet have their own wallet.
On Tuesday, Polymarket acknowledged the issue on its official Discord channel. The platform stated that it had discovered and fixed a security vulnerability affecting only a small number of users, and that the cause stemmed from a flaw in a third-party authentication provider.
Polymarket has not disclosed the number of affected accounts or the value of stolen assets, nor has it named any third-party partners involved. However, the company asserts that the incident has been thoroughly resolved and there are no remaining risks, and that it will proactively contact affected users.
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The Polymarket article claiming the recent hack was caused by a third party first appeared on CoinMoi .
