ZachXBT flags $520K Polymarket exploit on Polygon, team says funds are safe
Blockchain investigator ZachXBT has highlighted a suspected security breach involving Polymarket, the world’s largest decentralized prediction market platform.
What to know:
- Blockchain sleuth ZachXBT flagged a suspected security breach at Polymarket in which more than $520,000 was drained from two smart contracts on the Polygon blockchain.
- Polymarket developers said the incident stemmed from a private key compromise of an internal operations wallet tied to its rewards payout system, stressing that user funds and market resolutions remain safe.
Polymarket developers said the company is aware of reports tied to its rewards payout system in a post on X. The team emphasized that user funds and market resolutions remain safe, describing the issue as a private key compromise of an internal operations wallet rather than a broader smart contract exploit or core infrastructure breach. Further updates are expected.
Polygon Labs’ CTO Mudit Gupta also commented on the incident, stating:
“Polymarket contracts are safe. User funds are safe. Looks like their market initializer was compromised. No impact to the users or the contracts.”
Polymarket has not yet issued an official statement from its main X account. CoinDesk has reached out to the company for additional comment. The incident comes amid heightened scrutiny of decentralized finance platforms.
