TLDR
- Polymarket halted trading on Thursday after saying one of its third-party providers was compromised.
- The platform went into “cancel-only” mode after its Predictions Trading API had a “major outage.”
- Users reported accounts drained of thousands of dollars after positions were sold without consent.
- DeFi Llama tracked about $2.7 million in losses, just under the June breach total.
- Polymarket said impacted users will be made whole, and all systems were operational as of 7:05 pm UTC.
Polymarket halted trading on Thursday after saying one of its third-party providers was compromised. The prediction markets platform said the breach affected users on its international venue.
Multiple Polymarket Users Report Stolen Funds as Platform Restricts Trading and Launches Investigation
Multiple Polymarket users reported unauthorized fund transfers, with some claiming losses of hundreds of thousands of dollars. Users suspected a possible frontend compromise,… pic.twitter.com/xCOq8vTs2W
— Wu Blockchain (@WuBlockchain) October 29, 2026
The company reported that its Predictions Trading API had a “major outage.” Trading was put into “cancel-only” mode while the issue was addressed.
What Polymarket Reported
In an update on its status page, Polymarket said it had identified and fixed the issue affecting its operations. It said the fix covered its international platform.
🚨995 Polymarket accounts just got drained through Polymarket's own website. Let me explain how, because this one should scare everyone in crypto.
No fake link. No shady airdrop. These people were on the real Polymarket dot com on Thursday.
Polymarket's site loaded a script… pic.twitter.com/egWWuWrGY4
— Evan Luthra (@EvanLuthra) October 29, 2026
“One of our third party providers was compromised, and we have referred this to relevant law enforcement,” the company said. The statement did not name the provider.
Polymarket also said that anyone who has been impacted will be made whole. The statement said trading had been halted while the issue was handled.
The announcement followed reports from users on X, formerly Twitter. Several people said their accounts had been drained of thousands of dollars.
Users said their positions were sold without their consent. CoinDesk confirmed that users with balances on the international platform saw their accounts drained.
Losses and the Earlier Breach
According to DeFi Llama, about $2.7 million in losses have been tracked from Thursday’s breach. That figure came in just under the total from an earlier incident.
In June, Polymarket reported that hackers drained more than $2.9 million in user funds. They did so by compromising a third-party vendor.
Another report put the June losses at about $3 million. That breach affected the company’s front-end.
This is the second time in recent months that Polymarket users have lost funds because of a third-party breach. Both incidents involved outside providers rather than Polymarket’s own systems.
Polymarket is led by founder and CEO Shayne Coplan. The company has referred Thursday’s breach to law enforcement.
As of 7:05 pm UTC on Thursday, Polymarket’s status page showed all of its systems were operational.
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