Polymarket has resumed trading after temporarily suspending activity due to a security incident involving one of its third-party service providers. The prediction market platform has confirmed that it had identified and fixed the issue. It also said that traders affected by the incident would receive full reimbursement. The company had earlier paused trading as a safety measure while it worked to restore normal operations. The incident involved a third-party provider, which was later identified as DebugBear. Polymarket has not shared further details about the breach.
DebugBear, a website performance monitoring and debugging platform, was identified as the third-party provider involved in the incident, reports Reuters. The company also acknowledged that it was dealing with an ongoing security issue. DebugBear warned its customers about the incident. It asked customers using its Real User Monitoring (RUM) product to remove the embedded code from their websites.
Polymarket said it had fixed the issue and restored trading. It also promised reimbursement to affected traders.
The incident comes at a time when prediction markets are gaining popularity. These platforms allow users to trade contracts based on the possible outcomes of real-world events.
The Polymarket incident highlights the security risks that online trading platforms can face when they depend on external service providers. Even when the main platform is not directly affected by a breach, a security issue involving a third-party service can disrupt its operations.
Meanwhile, crypto exchange Binance has also suffered from a cybersecurity incident and has frozen around Rs 28,560 crore worth of affected assets. The company has also assured users that they will not bear any losses from the incident. It said it would cover the entire amount using its Secure Asset Fund for Users (SAFU) and company funds. As a precaution, the company has even temporarily stopped deposits and withdrawals. Binance’s initial investigation suggests that the breach may have started with a compromised laptop belonging to a DevOps engineer. The attacker is said to have used this access to enter a service container and submit unauthorised withdrawal transactions.