Polymarket Says $520,000 Drain Did Not Affect User Funds

Prediction-market platform Polymarket said user funds and its market settlement system remain secure after a recent $520,000 drain.

CoinDesk reported on May 22 that Polymarket developers wrote on X that the incident was caused by the exposure of a private key linked to a wallet used for reward payouts. Shantikiran Chanal, a Polymarket official, said user funds and market settlement remain safe. He added that the issue stemmed from a compromised private key for an internal operational wallet, not from smart contracts or core infrastructure.

Earlier, on-chain investigator ZachXBT said about $520,000 was drained from two Polymarket-related smart contracts on the Polygon network.

Polymarket is carrying out a further investigation and follow-up measures, CoinDesk reported.