DaN’SKi Says Polymarket Requires Agreement Before Returning Funds

An X user identified as DaN’SKi said Polymarket requires users affected by a security incident to disclose personal information and sign a legally binding agreement before receiving their funds. According to ChainCatcher, DaN’SKi said the requirement conflicts with the platform’s earlier promise of full compensation and questioned its legality; screenshots attached to the post showed a sample settlement and release agreement. On Oct. 29, Polymarket said on X that a third-party service provider for its international platform, Polymarket.com, had been compromised, that the issue was identified and fixed, and that the incident had been referred to law enforcement. The platform said affected users would receive full compensation. After pausing trading, Polymarket announced that trading had fully resumed and said it would reimburse all affected traders. CNBC reported that Polymarket told users on Discord that funds for users with losses below $10,000 would be restored by Oct. 30, while users with greater losses would need to sign a release agreement to receive compensation. Data analysis from Betting Intelligence and Polysights cited by CNBC showed that one account withdrew at least $2.7 million from 710 wallets that day. People familiar with the matter told CNBC that the incident stemmed from a breach of DebugBear, a website performance monitoring service, and that Polymarket referred it to UK law enforcement. Polymarket’s U.S. platform was not affected. In June, Polymarket also said a third-party vendor had been breached and pledged to refund affected users.