Coinbase Wallet says prediction market funds are unaffected by Polymarket's security incident

What Coinbase Wallet said

Coinbase Wallet says people who trade prediction markets inside the wallet are not affected by the security incident Polymarket disclosed on Thursday evening. In a post on its official X account at 19:12 UTC on 29 October 2026 (20:12 in Amsterdam), Coinbase Wallet said funds and positions held through its prediction markets integration with Polymarket are unaffected. The post quoted Polymarket's own update on the incident.

The statement matters because Coinbase Wallet's prediction markets run on Polymarket. The feature arrived in the wallet on 29 September 2026 under the line "Powered by @Polymarket", and it has since added short crypto rounds. Coinbase Wallet says prediction markets trading is not available to users in the United States or certain other restricted jurisdictions.

What Polymarket disclosed

Polymarket described the problem in a post from its Polymarket Traders account at 18:33 UTC. It said it had identified and fixed an issue affecting its international platform, Polymarket.com, that one of its third-party providers had been compromised, and that it had referred the case to law enforcement. It also said anyone affected would be made whole, and that it had temporarily halted trading out of caution.

Trading resumed within the hour

Trading did not stay down for long. About 20 minutes later Polymarket said it was coming back online and that trading would resume at approximately 3pm ET, which is 19:00 UTC. At 19:00 UTC it said trading was fully back online and that it was fully reimbursing all affected traders.

What is still unknown

Several things have not been published. Neither company has named the third-party provider, said what kind of access the attacker gained, or given the number of affected users or the amount involved. Polymarket has not said how affected traders will be identified or when reimbursements will arrive, and Coinbase Wallet did not explain why its integration was outside the incident. We will update this story if either company publishes more detail.

Our take

For Coinbase Wallet users the official message is simple: nothing to do, and your positions stand. If you also trade directly on Polymarket.com, follow Polymarket's own channels for the reimbursement process. Incidents like this are routinely followed by fake refund offers, so ignore direct messages, ads or sites asking you to connect a wallet, sign a transaction or share a recovery phrase to receive compensation. Polymarket has not announced any claim form.