ChainCatcher report: On October 30, X user daN’SKi (@TheNotoriousSKi) posted that Polymarket, a prediction market platform, is requiring users affected by its alleged security incident to first disclose personal identification information and sign legally binding contracts before funds will be returned. The post claims this requirement contradicts the platform’s earlier statement that all affected users would receive full compensation, and questions its legality. The post includes multiple screenshots of documents labeled as sample settlement and release agreements. On October 29, Polymarket stated on X that a third-party service provider for its international platform, Polymarket.com, had been compromised; the issue had been identified and resolved, and the incident had been handed over to relevant law enforcement authorities, with affected users assured of full compensation. The platform had previously suspended trading, then announced full restoration of services and pledged full reimbursement to all affected traders. According to CNBC, Polymarket informed users on Discord that funds lost below $10,000 would be restored by October 30, while users with losses exceeding that amount must sign a liability waiver to receive reimbursement. CNBC, citing data analysis from Betting Intelligence and Polysights, reported that on the same day, a single account withdrew at least $2.7 million from 710 wallets. A source familiar with the matter told CNBC that the breach originated from the website performance monitoring service DebugBear, and that Polymarket has referred the incident to UK law enforcement. Polymarket’s U.S. platform was not affected by this incident. In June of this year, Polymarket also reported a third-party vendor compromise and pledged refunds to affected users.
Polymarket Requires a Legal Agreement Before Refunding Funds Following a Security Incident
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Summary
On-chain data shows that Polymarket is requiring users to sign legal agreements before issuing refunds following a security breach. A third-party service provider was compromised, and the issue has been resolved. The platform confirmed full compensation for affected users, with on-chain analysis indicating that smaller losses will be restored by October 30. Larger claims require a signed release. DebugBear was reportedly breached, and the case is under investigation by UK authorities. Polymarket’s U.S. operations were unaffected. A similar incident occurred in June involving a third-party supplier.
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