Security Breach Shakes Decentralized Trading Ecosystem
January 8 marked a turbulent day for the decentralized prediction market space. A popular automated trading tool was compromised in a cyberattack, sparking widespread concern. The team confirmed that approximately $230,000 in user funds were impacted during the incident.
Rapid Response and Recovery Measures
Following detection of suspicious activity, the system was immediately taken offline to contain the damage. The development team is now finalizing critical security patches and has engaged independent auditors to conduct a full code review, with all work expected to wrap up by the weekend.
Project Origins and Backing
Originally launched by PMX Trade, the bot previously secured strategic funding from Alliance DAO. It was designed to enable automated, strategy-driven trading on Polymarket, enhancing user efficiency and market participation.
- Amount affected: ~$230,000
- Current status: System offline for maintenance
- Timeline: Patching and auditing to complete within days
- Next steps: Enhanced security protocols to be implemented
The team pledged full transparency moving forward and emphasized a renewed focus on resilience and user protection.