Polymarket briefly halted trading on Oct. 29 after detecting an exploit affecting its international site, then brought the market back online after saying the issue had been fixed. The company said the incident stemmed from a compromised third-party provider and pledged to reimburse all affected users.

Early estimates from DeFi analytics developer 0xngmi put the losses at roughly $2.7 million in cryptocurrency. According to the explanation shared by Polymarket and outside tracking, the attack involved a script from a compromised web performance tracking provider that exposed visitors’ wallets, while users’ seed phrases were not affected.

Trading pause and restart

Polymarket said at 2:33 p.m. ET that it had identified an exploit on the version of its platform used by international customers. The company paused trading as a precaution while it addressed the problem.

Trading resumed at around 3:00 p.m. ET. After reopening the platform, Polymarket said affected traders would be fully reimbursed.

What the exploit involved

The company attributed the incident to a compromised third-party provider. Details cited in the report said a script loaded from a web performance tracking provider was used in the exploit, which exposed wallets belonging to visitors on the site.

The reported wallet exposure did not extend to seed phrases, which were described as remaining safe. Even so, analysts tracking the incident estimated that attackers were able to steal about $2.7 million from users before the issue was contained.

Loss estimate and user impact

The estimate of roughly $2.7 million came from 0xngmi, a DeFi analytics developer who tracked the losses linked to the exploit. That figure was presented as an estimate rather than a final total.

Polymarket said users affected by the incident would be made whole, reinforcing the commitment when trading resumed. The company did not describe additional figures in the report beyond the early outside estimate.

Recent security history and next steps

The Oct. 29 incident follows another breach Polymarket disclosed in May, when about $700,000 was stolen after hackers compromised a six-year-old private key used for internal operations.

After that earlier attack, the platform said it had rotated the compromised key, revoked production permissions, and planned to move its private keys to a more secure management system. In the latest case, the confirmed next step is reimbursement for affected traders after the trading halt and subsequent restart.

Source: news.bitcoin.com