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Polymarket restores trading after third-party security breach

Deals & M&A1 min read

Polymarket said a third-party provider was compromised in a security incident on 29 October, and that affected users would be reimbursed. The platform briefly suspended event-contract trading while addressing the incident, then resumed it; it did not confirm the total funds taken or number of affected accounts.

Polymarket said it would reimburse users whose funds were taken in a security breach on 29 October, after a third-party provider was compromised. The company confirmed the incident and said it had referred the matter to the police. In a post on X, the company's official profile said: "Qualquer pessoa que tenha sido afetada será totalmente ressarcida".

One person posted on X that US$ 800 mil had been taken from their account, an amount the post put at about R$ 4,3 milhões. According to those posts, social media users passed around estimates pointing to US$ 2,5 milhões in diverted funds. The platform left unconfirmed both the total volume of the theft and how many accounts were hit.

Early on the afternoon of 29 October, Polymarket temporarily suspended trading in event contracts while it worked to contain the effects of the attack. Trading resumed a few minutes later.

Polymarket has recently been one of the main platforms for predictions on the Brazilian electoral process. A report indicated that Sunday's presidential election moved $249m (R$1.3bn) in bets on the platform, including $48.5m on contracts linked to a scenario of victory for Luiz Inácio Lula da Silva and $62m on bets on Flávio Bolsonaro.

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Brazil’s Provisional Measure 1,394/2026 prohibits fixed-odds betting and online casino activity nationwide, with federal authorisations expiring on 25 October 2026, according to the report. The measure also bars new authorisations; operators’ next steps depend on court challenges and parliamentary consideration, while the status of expired licences if the ban changes remains unresolved.

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