Polymarket points to third-party login tool after users report account breaches

Polymarket points to third-party login tool after users report account breaches The platform attributed the incident to a third-party login provider, which several users speculated was Magic Labs, a popular tool for email-based logins. What to know: Prediction market Polymarket experienced a series of account breaches, with several users reporting missing funds and suspicious login attempts. The platform attributed the incident to an unidentified third-party login provider. Several users speculated the provider was Magic Labs, a popular tool for email-based logins and wallet creation. Polymarket acknowledged the issue, but did not disclose the number of affected users or the amount of money stolen, highlighting the risks of relying on third-party tools in crypto platforms. Prediction market Polymarket blamed an unidentified third-party login provider for recent account breaches reported by several users. Polymarket said unauthorized account access was related to a third-party login tool. (Kevin Ku/Unsplash/Modified by CoinDesk) The platform confirmed the security incident on its Discord channel after users reported missing funds and suspicious login attempts. See all newsletters Social media posts on Reddit and X show several users received unexpected login alerts and then discovered their balances had been wiped. One user said their account dropped to just one cent despite not having their devices compromised and no other affected services. Another user on X said they lost around $2,000, despite having two-factor authentication on. A third user said their “top 1000” Polymarket account was drained, while a fourth said a testing account was drained. While Polymarket didn’t name the provider in question, several users pointed to Magic Labs, which allows email-based logins and automatically creates wallets for users. The tool is popular and allows newcomers who don’t have crypto wallets to easily access one, making it a common entry point to Polymarket and other platforms. The company acknowledged the issue but did not disclose how many users were affected or the amount of money stolen. “We recently identified and resolved a security issue affecting a small number of users. The issue was caused by a vulnerability introduced by a third-party authentication provider," a company spokesperson said on Discord. “Polymarket takes security extremely seriously, and the issue has been remediated. There is no ongoing risk at this time, and we will be in contact with impacted users." Polymarket and Magic Labs did not respond immediately to emails asking for comment. More For You State of the Blockchain 2025 L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below. What to know: 2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns. This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch...

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