Oct 29 (Reuters) – Polymarket said on Thursday it had restored trading after a temporary halt prompted by a security incident involving a third-party provider, and that it would fully reimburse affected traders.
The prediction market operator said in a post on X that it had identified and fixed the issue. It earlier halted trading as a precaution while it worked to bring the platform back online.
It had referred the incident to UK law enforcement.
A source familiar with the matter identified DebugBear as the third-party provider involved in the Polymarket incident.
DebugBear, a website performance monitoring and debugging platform, said in a post on X that it was affected by an ongoing security incident and urged customers using its RUM product to remove the embedded code from their websites.
Prediction markets have surged in popularity, with users increasingly trading contracts tied to outcomes ranging from elections and sports to financial and geopolitical events.
Interest in the platforms grew during the 2024 US presidential election, driving retail engagement and trading activity, while financial institutions are increasingly seeking exposure to event-driven trading.
(Reporting by Prakhar Srivastava in Bengaluru and AJ Vicens; Editing by Pooja Desai and Maju Samuel)

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