Polymarket Confirms Security Vulnerability Due to Identity Verification Service

DegenApeSurfer · 2026-01-13T09:09:01+00:00

Polymarket recently reported a security incident involving a vulnerability in third-party provider Magic Labs, risking user accounts and exposing them to identity theft. Attackers bypassed two-factor authentication, resulting in financial losses for affected users. While Polymarket claims to have addressed the issue, concerns remain regarding transparency and user trust.

DegenApeSurfer

2026-01-13 09:09:01

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Polymarket, a major player in the decentralized prediction market space, has issued an official statement regarding a security incident, raising alarms across the industry. The platform indicated that the vulnerability was found in the infrastructure of Magic Labs, a third-party identity verification provider. Due to this flaw, some accounts registered through the platform’s 24-party identity verification system are at risk.

Looking into the details of the security incident, affected users were subjected to identity theft attacks. Attackers bypassed the two-factor authentication mechanisms directly, instead of requiring phone number verification or two-factor codes, gaining access to funds. This situation resulted in financial losses for users who were targeted by phishing (phishing) threats and shared sensitive information.

Among the measures taken by the platform, there is a statement that the vulnerability has been patched and no further security risks remain in the system. Polymarket officials committed to directly contacting each affected user to provide support. However, the number of users harmed and the total amount of damages have not yet been disclosed to the public. This lack of transparency continues to raise questions about the platform’s trustworthiness.

Industry observers emphasize that incidents like this highlight the significant risk factor posed by third-party service providers in cryptocurrency systems.

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