Polymarket Suspends Trading After Third-Party Breach Drains User Funds
Polymarket halts trading after unauthorized withdrawals
Prediction market platform Polymarket suspended trading on October 29, 2026, after a breach at one of its third-party providers led to user funds being stolen. Prediction markets let people bet on the outcome of real-world events using cryptocurrency.
The incident affected users on Polymarket's international venue. Users first reported unauthorized withdrawals from their accounts on the social media platform X (formerly Twitter). CoinDesk confirmed that users with balances on the international platform saw their accounts drained.
Key breach details
- Polymarket says a third-party service provider was compromised
- Losses are estimated at roughly $2.7 million, according to DeFi Llama
- Polymarket says it has identified and fixed the issue
- The incident has been referred to relevant law enforcement
- Trading remains suspended on the international platform
- Polymarket says affected users will be fully reimbursed
What Polymarket's official statement says
Polymarket announced the breach on its public status page. "We have identified and fixed the issue impacting our international platform," the statement read. "One of our third-party providers was compromised, and we have referred this to relevant law enforcement."
The statement added that users would be made whole for their losses despite the trading halt.
Second third-party breach in 2026
This is the second time in recent months that Polymarket users have lost funds due to a third-party security breach. In June 2026, a different third-party vendor was hacked, affecting Polymarket's website front end and resulting in about $3.1 million in stolen user funds. The company had also promised full refunds after that earlier incident.
Unresolved details
Polymarket has not named the specific third-party provider involved in the latest breach. No timeline has been given for when trading will resume on the international platform.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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