Blockchain investigator ZachXBT has flagged a suspected security incident involving Polymarket, the world’s largest decentralized prediction market, after on-chain data indicated that more than $520,000 was drained from smart contracts on the Polygon network.
According to information shared by ZachXBT, two smart contracts appear to have been impacted, with funds reportedly transferred to an attacker-controlled wallet. The affected addresses include 0x871D7c0f9E19001fC01E04e6cdFa7fA20f929082 and 0x91430CaD2d3975766499717fA0D66A78D814E5c5, with assets allegedly sent to 0x8F98075db5d6C620e8D420A8c516E2F2059d9B91.
Polymarket responded to the reports in a post on X, saying it is investigating an issue tied to its rewards payout system. The platform stressed that user funds and market outcomes remain secure, describing the incident as a compromise of an internal operations wallet rather than an exploit of its core smart contracts or infrastructure.
Polygon Labs CTO Mudit Gupta also commented on the situation, stating that the core contracts and user funds were not affected. “Polymarket contracts are safe. User funds are safe. Looks like their market initializer was compromised. No impact to the users or the contracts,” he said.
Polymarket has not yet released a detailed official statement via its primary channels, and CoinDesk has reportedly reached out for further clarification.
The incident highlights ongoing operational security risks in decentralized finance, where compromises of internal keys or supporting systems can still lead to meaningful losses even when core protocol infrastructure remains intact.
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