Polymarket, a prediction market platform, reported that some users had funds stolen due to a hack involving an unnamed third-party provider, DebugBear, which is a website performance monitoring service. The breach led to unauthorized withdrawals, first reported by traders on social media.
In response, Polymarket suspended trading on its international platform but resumed operations shortly after fixing the issue. The company has contacted law enforcement in the U.K. regarding the incident and has committed to reimbursing affected users.
This disruption is particularly concerning as it comes just days before the U.S. midterm elections, when trading volumes are expected to increase significantly. The incident echoes a similar event from June, where Polymarket also had to refund users due to a third-party vendor compromise.
The U.S. platform remains unaffected, but the overall security of decentralized finance platforms like Polymarket may come under scrutiny as a result of this incident