Polycule Faces Rug Pull Allegations Following Reported Hack and Silence

Polycule, a prominent automated trading bot for the Polymarket prediction platform, reported a security breach on January 7, 2026, resulting in $230,000 of user funds being compromised. The team initially promised swift patches, a security audit, and compensation from treasury funds—but updates ceased by January 12, fueling speculation of a rug pull.

Rival platform Insiders.bot seized the opportunity, with founder Ryan Chi publicly branding Polycule's incident as a confirmed rug pull. Chi cited the team's silence, frozen withdrawals, and lack of transparency as evidence. Insiders.bot aggressively courted displaced users with a 50% membership discount, positioning itself as the successor in the automated trading niche.

The incident underscores the fragility of trust in decentralized finance tools, where security breaches and exit scams often blur together. Competitors are capitalizing on the vacuum, while users await clarity—or restitution—from Polycule.