According to Polymarket developers, reports tied to rewards payouts stem from a wallet private key compromise, while user funds and market resolution remain unaffected.
Polymarket developers said they are aware of security reports connected to rewards payouts and stated that user funds and market resolution are safe. The team said preliminary findings indicate a private key compromise affecting a wallet used for internal top-up operations, rather than Polymarket’s smart contracts (self-executing blockchain code) or core infrastructure. The statement suggests the issue was isolated to an internal operational wallet, a distinction that typically means the platform’s main protocol logic and customer balances were not directly breached.