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Polymarket pays $3.9 million to compensate users affected by exploit

A malicious script injected through a compromised third-party vendor drained about 2.7 million dollars from 726 wallets on Polymarket's international platform on October 29. Polymarket is paying out 3.9 million dollars in total to cover the drained funds plus losses from the trading pause, with 689 wallets already refunded in full and 37 still under verification.

Polymarket refunds affected traders

Polymarket is paying out 3.9 million dollars after a malicious script drained about 2.7 million dollars from 726 trader wallets on its international platform, according to Crypto Economy.

The incident occurred on October 29. Crypto Economy reports that the script was injected through a compromised third-party vendor.

Compensation includes trading-pause losses

The 3.9 million dollars in payments covers both the drained funds and losses from the trading pause, according to Crypto Economy. The compensation therefore extends beyond the money removed from affected wallets.

As reported on Oct 31, 2026, 689 wallets had already been refunded in full. Another 37 remained under verification, leaving the reimbursement process incomplete.

What it means for prediction markets

  • Vendor security is part of platform risk: The reported entry point was a compromised third-party vendor, making external dependencies relevant to traders assessing operational safeguards.
  • Disruption costs exceeded the drained funds: Polymarket’s compensation includes trading-pause losses as well as the about 2.7 million dollars taken from wallets.
  • Refund completion remains a development to watch: While 689 wallets have been refunded in full, verification is still pending for 37.
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Sources & attribution

Published
  1. Source
    Crypto Economycrypto-economy.com
    Publisher
    https://crypto-economy.com
    Source URL
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