Polymarket Reports Internal Key Compromise Amid POL Drain Incident
- On May 22, Polymarket faced a rapid drain of POL tokens, with initial reports indicating over $520,000 was compromised.
- ZachXBT and Bubblemaps alerted users that attackers were removing approximately 5,000 POL every 30 seconds.
- Polymarket later clarified that the incident was due to a private-key compromise related to internal operations, not a smart-contract exploit.
- The total estimated loss reached about $600,000 at the time of the alerts.
- Polymarket assured users that their funds and market resolution remained safe despite the breach.
The incident highlights vulnerabilities in operational security within cryptocurrency platforms, as Polymarket’s internal wallet used for top-ups was compromised rather than its core infrastructure. The team is currently investigating the situation and has begun rotating affected keys.
As of now, approximately $600,000 has been reported as drained from Polymarket’s internal operations while user funds remain unaffected. (Source)
