Polymarket resumes trading after $2.65 million exploit, says third-party provider was compromised
After over $2.6 million was lost within minutes on Polymarket, the predictions market platform placed its exchange in cancel-only mode and paused relayer actions to investigate the incident, and later said it was back online.On Thursday, Arkham data showed that a wallet address identified as belonging to a suspected attacker holds about $2.65 million in POL after revealing multiple recent USDC.e-to-POL swaps through Relay. Since then, they have moved funds to different addresses."Polymarket.com: We're still looking into this," the platform said in a post on X. "The exchange is in cancel-only mode. You can cancel orders, but no new orders or trades are processing. Relayer actions are paused while we investigate."Later, the platform said it had "found the cause," fixed it, and said its third-party providers were "compromised.""One of our third party providers was compromised, and we have referred this to relevant law enforcement," the platform said.Later, the platform said it was back online and that it planned to fully reimburse traders who were affected.This is not the first time Polymarket has been attacked. Last year, there was an alleged governance attack on one of its bets on whether Ukraine would agree to President Trump's mineral deal by a certain date. Then earlier this year, suspicious outflows tied to Polymarket's UMA CTF Adapter infrastructure on Polygon prompted an internal investigation.Updated at 8 p.m. UTC time to include latest updates from Polymarket