Stolen Debit Cards Used in $10,000,000 Polymarket Scheme: Report

Fraudsters used stolen debit cards on a U.S. prediction market in a bid to take at least $10 million through bets and cash-outs, according to a new report.

A debit-card processor flagged the scheme to the company in February, reports The Wall Street Journal.

Users linked stolen cards to Polymarket US accounts then tried to wager and pull the money into clean accounts they controlled.

At one point the processor rejected more than 80% of deposits as fraudulent, far above the roughly 1% industry norm.

Polymarket employees took the problem to leadership.

Chief Executive Shayne Coplan told the compliance team to focus on expansion, according to people familiar with the events.

Says those people,

“Just keep growing and pay a fine if regulators ever find out.”

The Journal ties the episode to a rush to grow that left security gaps open.

Polymarket is a prediction market where people bet on the outcome of events. The platform is adding executives as it prepares for a possible initial public offering.

Follow us on X, Facebook and Telegram



Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney