Polymarket Pays Out $3.9 Million After DebugBear Third-Party Script Compromise

Prediction market platform Polymarket has announced compensation totaling 3.9 million dollars to users affected by a malware incident involving a compromised third-party script. The malicious code was delivered through a performance monitoring script provided by DebugBear, which was injected into Polymarket.com and executed automatically for site visitors. Attackers used the script to target logged-in users, extracting trading positions from 726 wallets and transferring assets worth 2.7 million dollars to an attacker-controlled wallet. An additional 1.2 million dollars is being paid to owners of approximately 5,500 wallets that suffered losses due to the temporary trading suspension. Cybersecurity firm Hudson Rock identified DebugBear as the affected vendor. DebugBear later confirmed that attackers modified DNS records via the domain registrar, preventing email delivery during the incident. The attack was described as targeted at one specific customer website.

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Polymarket has confirmed it will pay a total of 3.9 million dollars to users impacted by malware delivered through a compromised third-party script on its platform.

The incident involved a performance-monitoring script from DebugBear that ran on Polymarket.com. According to Hudson Rock, attackers compromised the script, which then executed automatically for visitors and targeted logged-in users.

The malicious code searched for trading positions in user accounts and transferred or sold those positions, sending proceeds to an attacker-controlled wallet. As a result, 2.7 million dollars was stolen from 726 wallets.

Polymarket also decided to compensate owners of roughly 5,500 wallets with an additional 1.2 million dollars for losses caused by the temporary halt in trading while the platform investigated the breach.

DebugBear stated that the attackers gained access by altering DNS records through the domain registrar. This change also disrupted the vendor’s own email services over the weekend. The company noted that the attack was directed at the website of one specific customer.

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