❗️ Polymarket Users Lose Funds Following Third-Party Authentication Breach
The popular prediction platform Polymarket has confirmed a security incident: a number of accounts were compromised. Users are reporting drained wallets despite having two-factor authentication (2FA) enabled. 😱
How did it happen?
Reports of the hack first surfaced on X and Reddit. The scenario was consistent: users received notifications of suspicious login attempts, followed immediately by the disappearance of their funds.
A key detail: the issue primarily affected those who registered via Magic Labs. This service allows users to create non-custodial Ethereum wallets using only an email address. What was meant to be a simplified onboarding for crypto newcomers turned out to be the weakest link in the security chain.
Polymarket's Official Response
The project team acknowledged the incident but emphasized that the vulnerability originated with their service provider.
💬 "We have identified and resolved a security issue that affected a small number of users. The problem was caused by a vulnerability created by a third-party authentication provider," Polymarket stated.
The company has not yet disclosed the total financial damage or the exact number of victims but has promised to contact those affected.
Key Takeaway for the Crypto Community:
This incident proves once again that your asset security is only as strong as the weakest link in the chain. Delegating authentication to third-party services carries inherent risks, even with 2FA enabled. Always exercise maximum caution with non-custodial solutions tied to email addresses. #SAFU
Stay vigilant and keep your funds safe! 👇
#CryptoNews #Polymarket #SecurityBreach #Blockchain #Web3