Polymarket Halts Trading After Users Report Wallet Drains
Polymarket restricted trading to cancel-only mode and paused its relayer on October 29 after users reported unauthorized wallet withdrawals. Reports of losses range from $800,000 to $2.68 million, and the platform is investigating the incident.
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Trading Restrictions and Scope of Incident
Polymarket moved to cancel-only mode on October 29, blocking new buy and sell orders while allowing existing orders to be canceled. The platform also paused relayer actions as part of its response. Users reported unauthorized withdrawals and account drains during the incident, though the total loss figure remains unclear: one trader reported an $800,000 drain, while a social media account alleged losses totaling $2.68 million.
Investigation Status
Polymarket posted an incident notice documenting the event and said it was investigating the root cause. The platform did not immediately disclose whether the issue affected a subset of users or was widespread across its trading population. No timeline for restoring full trading functionality has been announced.
Why It Matters
For Traders
Cancel-only mode blocks new order entry; existing positions cannot be closed through normal trading mechanics, trapping liquidity until full service resumes.
For Investors
Security incidents at prediction market platforms erode user confidence and may suppress trading volume and protocol token valuations pending full incident disclosure.
For Builders
Relayer-dependent protocols face operational risk if relay infrastructure fails or is compromised; this incident underscores the need for robust monitoring and failsafe mechanics.
This article is for information only and is not financial advice. Read the full disclaimer.
