Polymarket Freezes Trading After Users Suffer Losses in External Breach

Polymarket has suspended trading on its international platform after a breach involving an external service provider resulted in unauthorized withdrawals from user accounts.

The company confirmed the security incident on Thursday following complaints from users on X (formerly Twitter), who reported that their funds had been taken without their consent. CoinDesk separately confirmed that several users with balances on Polymarket’s international venue had experienced losses.

According to an announcement on the platform’s status page, Polymarket identified and resolved the issue affecting its international operations. The company said the incident originated from a compromised third-party provider and had been referred to relevant law enforcement authorities.

Polymarket also pledged to reimburse users affected by the incident. Despite resolving the reported vulnerability, the platform temporarily halted trading.

The latest event represents the second major incident involving a third-party provider that has resulted in losses for Polymarket users in recent months.

In June, a separate external vendor was compromised, exposing the prediction market’s front-end infrastructure. Approximately $3 million in user funds were reportedly stolen during that incident.

DeFiLlama data puts the losses from Thursday’s breach at approximately $2.7 million, slightly less than the amount recorded in June.

The report was updated on October 29, 2026, at 19:33 UTC to add further details and at 19:39 UTC to reflect the updated estimate of user losses.

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