Polymarket affected by security vulnerability, risk of Magic Labs user accounts being compromised increases

【Blockchain Rhythm】Prediction market platform Polymarket ran into trouble this week. On December 24th, the platform officially confirmed that recent security threats to multiple user accounts were caused by a vulnerability in a third-party identity verification provider.

As early as this week, users on X and Reddit began to report that their Polymarket accounts had been hacked. These victims shared details of their losses on social media, which drew considerable attention. Further investigation revealed that the issue mainly affected users who registered through Magic Labs. Magic Labs is a service that allows users to log in directly with an email and automatically generate a non-custodial Ethereum wallet. For newcomers without experience in crypto asset wallets, this service is considered a very convenient entry point.

On Tuesday, Polymarket acknowledged the incident in its official Discord channel. The official statement said: “We recently discovered and fixed a security vulnerability affecting some users. This vulnerability originated from the third-party identity verification provider.” However, there is a problem—Polymarket has been very secretive about this. How many users were affected? What was the scale of the stolen funds? Which third-party service provider was responsible? All these details were not disclosed. The platform only briefly mentioned that the issue has been resolved and there are no further risks. This attitude towards information disclosure indeed makes users somewhat uneasy.