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Polymarket Sets $3.9 Million Compensation After Script Attack

The company said 95% of affected wallets had been fully reimbursed by the afternoon of Oct. 30. The total is not a confirmed estimate of funds taken.

Updated 2 min read
An anonymous trader checks a smartphone outside office buildings in Manhattan, New York. / TokenPost.ai
An anonymous trader checks a smartphone outside office buildings in Manhattan, New York. / TokenPost.ai

Polymarket said its compensation plan totals $3.9 million for traders affected by an Oct. 29 script attack on its international platform, but the figure does not establish how much money was taken.

In an Oct. 30 postmortem, the company allocated $2.7 million to trades affected by the attack and $1.2 million to losses connected to the pause. For trades closed while the attack was underway, Polymarket said reimbursement uses the position’s value at that time and accounts for sale slippage. In some pause-related cases, payment compares a position’s value when trading stopped with its later sale or settlement value.

The company reported full reimbursement for 95% of affected wallets by the afternoon of Oct. 30. It used on-chain and trading records to identify eligible wallets, so users did not need to file a claim for an initial payment. Traders who dispute an amount can request a review.

Polymarket said an attacker inserted a replacement for a third-party monitoring script used by Polymarket.com. The altered code acted through some users’ open sessions, enabling it to sell positions and transfer funds. The company cleared cached copies of the script and reset sessions, while trading and relayer activity remained paused until reopening. Planned safeguards include tighter content-security rules, controls to keep scripts on approved versions and isolation for third-party code. In an earlier notice, Polymarket said it referred the incident to law enforcement. EconoTimes previously reported on the disruption and compensation pledge.

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