Polymarket Users Report Unauthorized Withdrawals, $800K Loss
Polymarket users have reported unauthorized asset transfers, including one trader who said about $800,000 was taken from their account after all positions were sold. The trader also said a friend lost about $600,000. Other users reported losses of around $200,000 or unexpected withdrawal-signature requests on the website. The reports have raised concerns about a possible attack on Polymarket’s front end, but the platform had not commented at the time of publication. Polymarket suffered a separate front-end phishing attack in June, linked to a compromised third-party supplier, in which about $2.94 million in user assets was reportedly stolen.
Bearish
The reports are bearish for Polymarket’s reputation and could prompt affected users to withdraw funds or avoid trading until the platform clarifies what happened. In the short term, traders may react to the alleged losses and unexpected withdrawal-signature requests by reducing balances on the platform, increasing scrutiny of wallet approvals, and shifting activity to competitors. Any confirmed disruption or additional losses could intensify these reactions. The reports remain unverified, however, and Polymarket had not commented at publication time, so the scale and cause of the incident are unclear. The June front-end phishing attack, which reportedly led to about $2.94 million in losses after a third-party supplier was compromised, may heighten user concern because it points to a previous security problem. Longer term, the impact will depend on the platform’s investigation, any reimbursement, and improvements to security and user communications. The incident is not, on the information available, evidence of a broader crypto-market vulnerability; its likely direct effect is concentrated on Polymarket and confidence in prediction-market platforms.