- Polymarket confirms a third-party authentication flaw caused account drains for a limited number of users.
- Affected users will be contacted directly as investigations into suspicious logins continue.
- Reports revive past concerns over external login tools like Magic Labs and Google authentication.
Polymarket has officially confirmed that the reason is a vulnerability associated with the third-party login service, following reports of missing money from the site.
In a note posted via its Discord community on Tuesday, the company stated that it had located and remedied a security issue that had impacted a small number of users on the site. According to the announcement, the problem had been caused by a weakness that had been introduced by an external authentication service utilized by users to log in to their accounts.
However, according to Polymarket, the issue has since been completely addressed, and there is also no threat to user accounts at this time. Moreover, it has also been stated that the platform will personally contact users who were affected by the incident.
This comes after several reports from Reddit and X users about unusual activity on their accounts prior to having their balances reset. There were assertions that several login attempts from unknown IP addresses were made before the depletion of their balances.
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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.
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.
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