Polymarket Halts New Trades Amid Unverified Wallet-Loss Reports

| crypto.news
Polymarket restricted its international platform to cancel-only mode at 18:05 UTC on Oct. 29 (2:05 a.m. Taipei time on Oct. 30) and paused relayer activity while investigating an incident. Users can cancel existing orders, but new orders and trades are not processing. The disruption affects the international Predictions Trading API; account access, websocket, market data and Polygon RPC services were reported as operational. Polymarket has not confirmed a cause, a security breach or a loss estimate, and has given no timetable for restoring normal trading. Users on X alleged unauthorized wallet losses. One claimed losses of $800,000 and $600,000, while another alleged up to $2.68 million had moved through Polymarket deposit-wallet infrastructure. These claims and the suggested transaction route have not been independently verified. Polymarket has not announced a reimbursement plan. Its commitment to reimburse users affected by a separate third-party frontend issue in June does not apply to the October reports unless the company says otherwise. The notice did not identify Polymarket’s separate US venue as affected. For traders, the Polymarket trading halt and wallet-security claims highlight platform and custody risks, but the allegations remain unconfirmed. Treat social-media reports cautiously and check official updates before connecting a wallet or signing requests. The incident may weigh on confidence in Polymarket and prediction markets until the cause is clarified and trading resumes.
Neutral
The incident may prompt short-term caution among Polymarket users and reduce activity on its international venue, especially while new orders are disabled and wallet-loss claims remain unresolved. However, the reports are unverified, and the available information does not establish a direct effect on the price of a cryptocurrency. Polygon RPC was reported as operational, and no Polygon token disruption or broader market impact was identified. Over the longer term, confirmed losses or prolonged uncertainty could damage confidence in Polymarket and prediction markets, while a clear investigation and effective user protections could limit that fallout. On the evidence provided, the direct price impact on a named cryptocurrency is therefore neutral.