Polymarket Users Report Breaches in Third-Party Login

Polymarket reported a security breach on December 23, 2025, due to a vulnerability in a third-party authentication provider, impacting a limited number of users’ accounts.

The breach’s resolution reassures users, prompting scrutiny on third-party authentication services crucial to digital asset safety.

Polymarket Users Report Breaches in Third-Party Login

Polymarket users reported account breaches. USDC balances were impacted due to a vulnerability in a third-party login tool. This affected a small number of users.

Proper authentication security measures have been emphasized following these incidents.

Investigation Details

Magic Labs is speculated as the third-party service linked to the breaches. Polymarket relies on this service for passwordless logins via the Magic SDK. The issue has been fixed, and impacted users were contacted with resolution details.

The breach saw users’ USDC balances drained, with some reporting losses over $5,000. This incident highlights ongoing challenges in ensuring platform security in decentralized finance environments. The incident was limited to a specific subset of users.

Some affected users experienced

despite reportedly secure devices. This has prompted Polymarket to affirm the importance of using enhanced security measures like two-factor authentication.

Polymarket wallet via Magic Labs drained without phishing. — Anonymous User, source

Community Response

Historically, similar incidents occurred with authentication systems compromising user balances. Users have expressed concerns on privacy and data security in decentralized platforms. These events often lead to broader community discussions on security challenges.

The immediate financial impact mainly revolves around USDC fluctuations in user accounts. This leads to increased scrutiny on the third-party systems used by crypto platforms, heightening the focus on potential vulnerabilities that could be exploited by attackers.