
Polymarket said a compromised old private key affected an internal rewards and top-up wallet, while user funds and core systems remained unaffected; reported losses ranged from about $573,200 to roughly $700,000.
Polymarket said suspicious Polygon activity and a live POL drain were caused by a compromised old private key affecting an internal operations wallet used for rewards distribution and top-up functions, not by a flaw in its smart contracts or core market infrastructure. The platform said user funds remained safe and that contracts, market resolution, settlement systems, and core infrastructure were unaffected. Reported loss figures varied across updates and reports, ranging from more than $520,000 to over $660,000, about $600,000, $573,200, and roughly $700,000. Polymarket vice president of engineering Josh Stevens said $164,000 in funds had been recovered or frozen with help from ZachXBT, Bitcoin Vietnam, and ChangeNOW.