Polymarket Halts Trading After Users Report Large-Scale Wallet Drains

The disruption, which Polymarket classified as a major outage affecting its Predictions Trading API, began at 18:05 UTC. Although the exchange confirmed that new orders are currently blocked, it has provided little detail regarding the nature of the attack or the scale of the financial impact. Traders on the platform have taken to social media to voice their concerns, with one user identified as Car claiming a personal loss of $800,000 and the liquidation of all active positions. Another account, StarPlatinum, alleged that a single recipient wallet had accumulated approximately $2.68 million in user funds over the course of an hour.

Suspicion has largely coalesced around a potential frontend exploit, a theory bolstered by reports of malicious wallet-signing requests appearing on the site. This incident follows a similar breach in June, when a compromised third-party vendor allowed a malicious script to drain an estimated $3.1 million from users. In that instance, Polymarket publicly committed to full reimbursements. As of the latest update, the platform has not announced a similar refund program or a timeline for restoring full functionality. The disruption appears limited to the international blockchain-based platform, as the company’s separate, CFTC-regulated US venue remains distinct from the incident.