Polymarket has resumed platform trading after resolving a security incident and announced it will fully compensate affected users.

Incident and attribution

The protocol reported elimination of the vulnerability that led to unauthorized trades and fund withdrawals, according to its statement.

According to WSJ, the breach involved a compromised third‑party provider identified as DebugBear, where malicious code reportedly gained access to active user sessions.

That access enabled attackers to sell positions on behalf of users and withdraw funds from impacted accounts, the report says.

Scale of losses and immediate measures

Polymarket indicated that the total damage exceeded $2.6 million and pledged full compensation for users who lost funds during the incident.

The team said it removed the threat vector, restored normal operations and notified law enforcement about the compromise.

• Issue resolved: platform operations were restarted after remediation efforts.
• Compensation: the company committed to reimbursing affected users in full.
• Authorities: incident details were transmitted to relevant law enforcement bodies.

Ongoing transparency

Polymarket has not provided a detailed timetable for reimbursements but stated its intention to make victims whole as part of its corrective measures.

The company and reporting outlets continue to monitor the situation as investigators and external parties assess the breach and its implications for third‑party risk.