ZachXBT flags $520K Polymarket exploit on Polygon — private key compromise hit rewards wallet!

Blockchain investigator ZachXBT has flagged a suspected security breach at Polymarket, the world's largest decentralized prediction market platform, in which over $520,000 was drained from two smart contracts on the Polygon blockchain. The affected addresses were identified on-chain, with funds allegedly routed to a single attacker address.

Polymarket developers moved quickly to contain the narrative, clarifying that the incident stems from a private key compromise of an internal operations wallet tied to its rewards payout system — not a broader smart contract exploit or core infrastructure breach. User funds and market resolutions, the team stressed, remain safe.

The platform has not yet issued a formal statement from its main account, and further updates are expected. The incident lands at a sensitive moment, as decentralized finance platforms face heightened regulatory and…