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.
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