PREDICTION MARKETS | Polymarket Admin Wallet Compromised, Over $500,000 Stolen

Blockchain investigator, ZachXBT, has flagged a suspected security breach involving crypto prediction market platform Polymarket, with more than $520,000 drained from two smart contracts on the Polygon blockchain, according to published on-chain data.

The exploit allegedly targeted two contracts tied to Polymarket’s rewards infrastructure, with the stolen funds traced to an attacker-controlled wallet.

Polymarket developers later said the breach stemmed from a compromised private key linked to an internal operations wallet used for reward payouts, adding that the platform’s core infrastructure, user balances, and market settlements were unaffected.

“User funds and market resolutions remain safe,” a Polymarket developer said.

Blockchain analytics data cited by researchers showed the attacker draining roughly 5,000 POL tokens every 30 seconds before the exploit was identified, with losses estimated at around $520,000 at current prices.

The incident adds to growing scrutiny around operational security practices in decentralized finance, where private key compromises remain one of the most common attack vectors despite improvements in smart contract auditing and infrastructure security.

The exploit also comes during a turbulent week for Polymarket. Reports emerged that Indian authorities had ordered internet service providers to block access to the platform as part of a wider crackdown on online prediction markets.

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