Polymarket pauses 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 said it has since placed its exchange in cancel-only mode and paused relayer actions while it investigates the incident.

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.

This is a developing story.