Polymarket temporarily halted trading after reporting that one of its third-party providers had been compromised, while users said funds were removed from their accounts without authorization.
Trading restricted after API outage
The prediction-markets platform said its Predictions Trading API suffered a “major outage” on Thursday. The disruption led Polymarket to stop normal trading while it investigated the issue affecting its operations.
In an update to its status page, Polymarket said the platform had moved into “cancel-only” mode after identifying and fixing the operational problem. In that setting, users can cancel existing orders, but normal activity to place or execute new trades is restricted. By 7:05 p.m. UTC, Polymarket reported that all of its systems were operational.
The company said the incident involved a third-party provider rather than identifying a direct compromise of Polymarket’s own systems. “One of our third party providers was compromised, and we have referred this to relevant law enforcement,” Polymarket said. It also stated that anyone affected would be “made whole.”
Users report unauthorized position sales
The trading suspension followed online reports from several users who said their Polymarket accounts had been drained of thousands of dollars. According to those claims, positions in their accounts were sold without their consent.
The reports raise concerns about how an outside service connected to a trading platform can affect user accounts and transactions. Polymarket’s statement did not provide a total for any losses connected with Thursday’s incident, nor did it identify the provider involved.
Polymarket operates prediction markets, where participants trade positions linked to the outcomes of events. A trading halt or cancel-only restriction can be used to limit further activity while an operational or security issue is assessed. The company’s commitment to compensate affected users means the final impact will depend on which accounts and transactions are determined to have been affected.
Earlier third-party security incident
The latest disruption comes after Polymarket reported in June that hackers had drained more than $2.9 million in user funds by compromising a third-party vendor. That earlier incident provides relevant context for the platform’s decision to restrict trading after another provider compromise was reported.
The original report was published by Cointelegraph. Polymarket said the latest matter had been referred to law enforcement, but the source material did not provide further details about the investigation or a timetable for restoring unrestricted trading.
Market picture
Moneyiar market data at 10:09 p.m. Tehran time on October 25, 2026, showed:
- Polygon (prev. MATIC), now listed as POL, at $0.0898082186, up 0.39% over 24 hours and down 0.74% over seven days.
- Compound (COMP) at $21.1287447338, down 10.42% over 24 hours and up 0.30% over seven days.
- Four (FORM) at $0.2210079715, up 0.66% over 24 hours and down 7.29% over seven days.
These figures are Moneyiar data and are separate from the Polymarket incident.
