Prediction market platform Polymarket temporarily halted trading on its international site Thursday following a security breach affecting a third-party software provider. While the company has not confirmed the total amount of funds lost, reports citing blockchain analysis estimate approximately $2.65 to $2.7 million may have been siphoned from around 700 user wallets. Polymarket stated it will fully reimburse affected traders and has referred the matter to British law enforcement, as the attack appeared to originate in the United Kingdom. The compromised software was provided by DebugBear, a web analytics tool, which also acknowledged an ongoing security incident.
The disruption lasted nearly an hour, after which trading resumed. Polymarket’s U.S.-based platform was not affected. This incident follows a similar breach in June 2026 that resulted in over $2 million in losses. Polymarket, recently valued at $21 billion after a $1 billion investment led by a venture capital firm where Donald Trump Jr. is a partner, processes roughly $200 million in daily trading volume. The platform, along with its competitor Kalshi, is currently involved in legal battles regarding regulation of prediction markets. Several past incidents have involved allegations of insider trading, with cases involving a special forces soldier and a Google employee who have both pleaded not guilty.
Left-leaning outlets emphasized the scale of the potential financial loss and the history of security issues and legal challenges surrounding Polymarket. Right-leaning coverage is absent from this cluster.
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