PolyMarket hack: $2.6 million stolen in major security breach

The prediction market has been in an uproar following the PolyMarket hack, a brazen attack that saw more than $2.6 million stolen by the perpetrators and exposed serious vulnerabilities on the platform, leaving its team with little choice but to act fast.

How the PolyMarket Hack Happened

Incrypted’s report indicates the hackers gained access to PolyMarket via DebugBear, a third-party analytics service the platform uses. A malicious script was deployed to exploit this setup, enabling the attackers to hijack active sessions from traders and liquidate their positions with impunity.

It did not take long for developers to notice what was happening. The PolyMarket team quickly put the site into safe mode to halt all trading and cancel open orders in an effort to contain the situation.

Scope of the Attack and Platform Response

In total, close to 1,000 accounts were affected by the hack, with losses exceeding $2.6 million, sending shockwaves throughout the prediction market. To make amends with a community whose trust must be regained after a breach of this scale, the project has pledged to ensure that every user is made whole.

Reputation Under Pressure After Repeated Incidents

But PolyMarket is no stranger to serious security problems. Incrypted points out that a phishing operation cost users around $3 million back in June. One incident after another has called into question how well PolyMarket can be relied upon to protect its users’ data and assets. For now, the platform has to focus on repairing its reputation with the crypto world as much as dealing with the financial fallout.