Polymarket Confirms Third-Party Login Flaw After Users Report Drained Accounts
Polymarket just confirmed a critical third-party login vulnerability—and users are already reporting emptied wallets. The prediction market platform acknowledged the flaw after multiple accounts flagged unauthorized withdrawals.
How the Breach Unfolded
The exploit didn't need sophisticated hacking—attackers bypassed standard authentication through a compromised third-party service. Once inside, they drained funds directly from user accounts. No exact figures were disclosed, but the platform confirmed 'multiple incidents' tied to the same vulnerability.
Security in a Permissionless World
This isn't about smart contract bugs or blockchain exploits—it's about the weakest link in the login chain. Polymarket's response highlights the tension between seamless user experience and bulletproof security in decentralized applications. The team has temporarily disabled the affected login method and initiated an internal review.
Another reminder that in crypto, your assets are only as secure as your least-secure login option—almost poetic for an industry built on trustless systems. Maybe next time, skip the 'convenient' login and stick with cold storage. Your wallet will thank you while the 'finance innovators' figure out how to not get hacked by a basic auth flaw.
Polymarket Users Report Account Drains
A Reddit user reported waking up with three separate login notices despite their device and other online accounts appearing to be unaffected. Upon logging into their Polymarket account, they noticed all their positions were shut, and their balance dwindled to mere cents.
Some people cited Magic Labs, an e-wallet service commonly linked with Polymarket, as the potential source. A user on the X social network stated they lost money in their Polymarket wallet, which was set up with Magic Labs, when they never registered an account with an email or opened malicious links.
My @Polymarket wallet also got drained yesterday. It was a testing account so luckily the amount wasn't too bad. However, here's the scoop:
– Wallet was @magic_labs created. I never actually signed up for email with them so never got phishing links.
– My Google account is fine,…
This is not the first occasion where Polymarket community members have experienced security issues. In late 2024, reports surfaced that accounts were allegedly emptied after members accessed their accounts via Google authentication.
However, Polymarket has emphasized that security has always been one of its Core concerns and has made efforts to ensure that an incident like this does not happen in the future.
