Polymarket Confirms $3.1M Supply-Chain Attack
Polymarket has confirmed a third-party front-end supply-chain breach that resulted in the theft of approximately $3.1 million. According to blockchain intelligence firm AMLBot, the phishing attack drained PUSD from 11 user wallets. The stolen funds were subsequently bridged from Polygon to Ethereum and converted to ETH. Polymarket has pledged full refunds to the fewer than 15 affected accounts, though the platform has not yet publicly named the compromised vendor that injected the malicious code, The Defiant reports.
Tech Giants and Wall Street Eye M&A Opportunities
Despite the security incident, the prediction market sector is drawing intense interest from tech giants and traditional finance. A recent New York Times report revealed that Mark Zuckerberg is urging Meta's leadership to explore strategic partnerships with both Polymarket and Kalshi, as noted by The Defiant. This push follows revelations that Meta is developing its own internal prediction-market application dubbed "Arena."
The sector may also be ripe for buyouts. A June 29 note from broker Bernstein suggests that operational consolidation is blurring the lines between brokerages, sportsbooks, and exchanges, making platforms like Kalshi and Polymarket prime M&A targets. To track how these institutional shifts impact market volume and odds, traders often rely on resources like predictionmarketstools.com.
Senators Escalate CFTC Jurisdictional Battle
Meanwhile, regulatory scrutiny continues to mount. Senators John Curtis and Adam Schiff are demanding answers from the Commodity Futures Trading Commission (CFTC) regarding Polymarket's advertising practices. The lawmakers cited a "troubling" report on alleged deceptive marketing, raising concerns over the CFTC's enforcement capabilities, according to Cointelegraph.
In a separate legislative move, 17 Democratic senators are pushing the Senate Appropriations Subcommittee to attach a rider to the FY2027 spending bill. This provision would prohibit the CFTC from using federal funds to sue states over prediction-market regulations, marking a significant escalation in a multi-front jurisdictional battle that currently spans nine states.