Polymarket temporarilyhalted trading on its international platform after a third-party provider wascompromised. The company said it had identified and fixed the issue, referredthe incident to law enforcement and would compensate affected users. Tradingwas expected to resume around 3 p.m. ET on Thursday, according to the company'sannouncement.London's trading industry is coming home!The suspensionfollowed reports from users that funds had been drained from their accounts.The incident was linked to DebugBear, a performance-monitoring provider whosecode was used on Polymarket's website, according to The Wall Street Journal.DebugBear said it was responding to a security incident and advised customersto remove its embedded code.Attacker's Wallet Receives $2.5 MillionFrom UsersWhile investigating,Polymarket switched to a cancel-only mode. This prevented users from placingnew buy or sell orders but allowed them to cancel existing orders. The companyalso paused relayer actions as it worked to resolve the problem.Polymarket said it hadresolved the issue and would make affected users whole. However, it did notdisclose the full extent of the incident in its initial announcement.Blockchain activity reviewed by The Wall Street Journal indicated that a walletbelieved to be linked to the attacker had received more than $2.5 million fromuser accounts across more than 900 transactions.Polymarket paused trading on its website Thursday after some users of the prediction-market’s platform said their accounts had been drained of funds. https://t.co/P8x5w8bvKN— The Wall Street Journal (@WSJ) October 29, 2026Third-Party Breaches Raise FinancialPlatform RisksThe incident followsprevious coverage of Polymarket's market-surveillance measures, user tradinglosses and European regulatory plans. In August 2026, the platform'smonitoring programme included blockchain analytics and trade surveillanceto identify suspicious activity. An April report, citing Bloomberg, found thatat least 100,000Polymarket wallets had lost $1,000 or more through trading. In September, aseparate report examined the company's efforts to obtain financial statusin Europe. In another case involving a third-party provider, Pepperstonedisclosed a client data breach but said trading accounts, passwords and bankdetails were unaffected.This article was written by Tareq Sikder at www.financemagnates.com.