The Cyber Express Weekly Roundup: FBI Blames North Korea for $6B Binance Hack, Hackers Turn Up the Heat on Europe’s Fridges and More
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Polymarket users who had the site open during a short window on October 29 watched their positions get sold and their funds leave their wallets without doing anything themselves. The Polymarket hack did not start inside Polymarket.
It came through a small piece of code from an outside company that loaded on every visit to polymarket.com. The cryptocurrency-based prediction market now says it is returning $3.9 million to affected traders.
In a post-mortem published on October 31, Polymarket said a third-party vendor whose performance-monitoring script ran on polymarket.com had been compromised. The attacker swapped the vendor’s legitimate code for a compromised script built specifically to target Polymarket users.
The attacker did not need anyone’s password. For users who had the site open at the time, the malicious script used their active session to sell positions and move funds out of their wallets. Anyone logged in and browsing during that window was exposed. The vendor has publicly confirmed the compromise.
Polymarket’s status page first reported “unauthorized activity affecting user wallets” on October 29 and marked the incident as resolved later that day.
Performance-monitoring company DebugBear released its own update on the incident. It said its initial findings point to its domain registrar as the point of entry.
“Our DNS records were compromised through our domain registrar,” the company said on X. “We are currently unable to receive emails sent to our domain. Based on our initial investigation this attack targeted the website of a specific customer.”
[caption id="attachment_115172" align="aligncenter" width="538"]DebugBear added that it has “not seen any indication of a compromise of our internal systems,” though it is continuing to investigate.
This is the part of the story that should worry other website operators. According to the statements from both companies, the attacker appears to have gone after a vendor’s domain setup rather than Polymarket’s own systems, and used that position to put malicious code in front of Polymarket’s users. DebugBear’s own internal systems, by its account, show no sign of being breached.
Polymarket listed the steps it took once the attack was identified:
The trading pause stopped the bleeding, but it created a second set of losses for traders who were not directly hit by the script.
Polymarket is returning $3.9 million in total. Of that, $2.7 million covers the initial losses from the attack, and $1.2 million covers losses tied to the hours-long shutdown.
As of its post-mortem, the company said 95% of affected wallets had been refunded in full, through a mix of reimbursements for drained wallets and goodwill payments.
The refunds cover more than drained wallets. Polymarket said it also made goodwill payments in two cases:
Users do not need to file claims or tickets. Polymarket said it identified eligible wallets using on-chain and trading data. Anyone who thinks their amount is wrong, or believes they should have received a payment, can submit a form for the company to recheck.
Some questions are still open. Neither company has named the threat actor. DebugBear has said the attack targeted a single customer, but its investigation is ongoing, and it still cannot receive email sent to its domain. Polymarket has also not said exactly how many wallets were affected, only that 95% have been made whole.
The incident shows how much trust a website places in every outside script it loads. Polymarket’s own systems were not the entry point, yet its users still lost money, and it took a trading halt, a session reset and a removal of the vendor’s code to stop it.

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Confirming a ~$7M hack. Still investigating exactly what happened and how. Until we have clarity, Duelbits stays offline. User funds are safe. Next steps: finish the investigation, re-top hot wallets, and bring Duelbits back online, launch Duelbits 2.0. I'll keep posting updates as I have them. Duelbits will be back up asap. Updates to follow"Joe said the platform would stay offline until the investigation is finished and the hot wallets have been refilled. No one has independently verified his claim that user funds are safe.

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