Polymarket Pauses Trading After Third-Party Hack
Polymarket says an outside service provider was hit; user balances on the international platform have been restored and the case has been handed over to authorities.
Key Takeaways
- Polymarket halted trading after a third party was compromised and users reported that their accounts were drained without permission.
- The company says the issue has been fixed, users will be compensated, and the case has been referred to authorities.
- The attack hit the international environment and fits into earlier security incidents involving outside service providers at Polymarket.
Polymarket halted trading after a third party was compromised and users on the international platform reported that their accounts had been drained without permission. The crypto company says the issue has been fixed and that users will be compensated, while the case has been referred to authorities.
What Happened
The report came out on Thursday after users on X wrote that their funds had disappeared. CoinDesk then confirmed that multiple accounts on the international platform had been drained. Polymarket said on its status page that one of its outside service providers had been compromised and that the outage affected the international environment.
The company did not share any further technical details about the attack. Polymarket did stress, though, that it has resolved the issue and that trading is paused for now. For users, the main point is that this does not appear to be a problem in an individual trader’s own wallet, but rather a vulnerability at an outside party that had access to the platform.
Warnings Before This
The attack fits into a broader pattern around Polymarket. In June 2026, the platform already reported a major security breach in which a third party was compromised, causing about $3 million (€2.7 million) in losses for users. Earlier, in December 2025, Polymarket also pointed to unauthorized access through a vulnerability at an outside login provider.
That makes it clear how dependent crypto platforms can be on outside services for logging in, access, and processing. If one of those links gets hit, it can have direct consequences for user balances and for trust in the platform, even if the core of its own infrastructure was not attacked directly. In an earlier attack on Polymarket, it was already clear how quickly a compromised third party can spill over into user funds.
Why This Matters for Crypto
For European crypto followers, this is mainly a reminder that security is not just about the main chain or smart contracts, but also about the parties around them. On platforms with a hybrid setup, like prediction markets, a problem at a vendor can quickly spill over to users. That makes the role of outside service providers an important part of the risk picture around crypto platforms.
