Polymarket Points Finger to Third-Party Provider in Multiple Account Hack

Decentralized prediction marketplace Polymarket accused a third-party authentication provider of being responsible for a recent breach on its platform. This comes after users who were affected by the said hack took to X and Reddit to report their losses.

Polymarket Users Exposed to Vulnerability by Magic Eden

Polymarket did not attempt to deny that some of its users were affected by a security breach on its platform. Instead, it pointed to a third-party authentication provider, blaming it for the exploit that resulted in asset losses for several users. One of these users reported the breach on Reddit, stating that there have been three attempts to log into their Polymarket account.

This user clarified that his device has not been compromised, nor did Google find anything suspicious. “All other services are fine,” the user wrote on Reddit. When he later gained access to his Polymarket account, he realized that all his “deals were closed, and the balance is $0.01.”

His ordeal was confirmed in the comment section by another user, who claimed to have had the same experience. He also received notification of three login attempts before funds were drained from their Polymarket account. This user mentioned that he has two-factor authentication enabled on their email and did not click any links.

One thing that is common among the affected Polymarket users is that they signed up for the decentralized prediction market platform via Magic Eden. Many crypto newbies prefer this route because it lets them sign in via email addresses and creates non-custodial Ethereum wallets. So these first-time crypto users do not necessarily need a separate digital asset wallet.

Polymarket Expands with More Deals

The incident comes at a time when Polymarket is gaining massive traction and expanding its operations.

Back in October, it recorded $3 billion in volume and 338,000 unique traders. At the time, it was said that Polymarket is leading the sector with both high trading activity and a large, active user base.

Not too long after this, the US Commodity Futures Trading Commission (CFTC) issued an Amended Order of Designation to the prediction market company. This permits the platform to run an intermediated exchange under the full regulatory regime for federally supervised venues.

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