Security Alert: Malicious Code Found in Polymarket Copy-Trading Bot on GitHub (December 2025)
- What Exactly Was Discovered?
- How Does This Attack Work?
- Who's Affected and What Should They Do?
- Why Is This Particularly Dangerous?
- How Can Traders Protect Themselves?
- Is Polymarket Itself Compromised?
- The Bigger Picture: Crypto Bot Security
- What's Next for Affected Users?
- Final Thoughts
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In a shocking discovery, security researchers have uncovered hidden malware in a popular Polymarket copy-trading bot hosted on GitHub. The bot, created by a developer using the pseudonym "Trust412," reportedly contains malicious code designed to steal users' private keys and drain their crypto wallets. This incident highlights the ongoing risks of using unverified trading bots in the cryptocurrency space.
What Exactly Was Discovered?
The malicious code was cleverly hidden across multiple commits and dependencies in the "polymarket-copy-trading-bot" repository. According to security firm SlowMist, who sounded the alarm on December 21, 2025, the code was designed to scan configuration files, extract private keys, and transmit them to a remote server controlled by hackers. What makes this particularly concerning is that the developer allegedly went to great lengths to conceal the malicious nature of the code, repeatedly revising it to avoid detection.
How Does This Attack Work?
This is a classic supply chain attack targeting open-source tools. Users must first install the bot, which many do to copy successful traders on Polymarket. During setup, they're required to input their private keys for transaction signing - completely unaware that these sensitive credentials are being secretly exfiltrated. As one security researcher bluntly put it, "You're essentially handing thieves the keys to your crypto vault."
Who's Affected and What Should They Do?
Anyone who downloaded and used this particular bot should consider their wallets compromised. Immediate action is required:
- Delete the repository if still installed
- Assume all connected wallets are at risk
- Transfer funds to new wallets immediately
- Rotate all API keys that might have been exposed
Why Is This Particularly Dangerous?
Unlike exchange hacks where user funds are protected by institutional security measures, these bots require direct access to users' private keys. As noted by CoinMarketCap security analysts, "When you give a third-party tool your private keys, you're bypassing all security layers and trusting that code completely." The decentralized nature of these tools makes them both powerful and perilous.
How Can Traders Protect Themselves?
Security experts recommend several precautions:
- Thoroughly audit any open-source code before use
- Never use bots that require your private keys
- Consider using hardware wallets for trading funds
- Monitor GitHub repositories for security disclosures
Is Polymarket Itself Compromised?
Important clarification: The Polymarket platform itself hasn't been hacked. These are unofficial, third-party tools created by independent developers. However, the incident does raise questions about the security culture surrounding prediction markets and the tools built around them.
The Bigger Picture: Crypto Bot Security
This incident follows a worrying trend in decentralized finance. According to CryptoCompare data, losses from malicious crypto tools have increased 300% year-over-year. The open-source nature of these projects, while beneficial for transparency, also allows bad actors to hide malicious code in plain sight. As one developer quipped, "GitHub has become both our greatest resource and our biggest vulnerability."
What's Next for Affected Users?
Beyond securing their funds, victims should report the incident to GitHub and relevant authorities. While recovery of stolen funds is unlikely, documenting these attacks helps improve ecosystem security. The BTCC research team suggests keeping detailed records of all transactions involving the compromised wallets for potential future investigations.
Final Thoughts
This incident serves as a stark reminder that in crypto, convenience often comes with risk. As we've seen time and again, from wallet drainers to phishing scams, the human element remains the weakest LINK in security. Perhaps it's time the industry develops better standards for third-party trading tools - because right now, it's the Wild West out there.
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What is the Polymarket copy-trading bot incident?
It involves a GitHub-hosted trading bot that contained hidden malware designed to steal users' private keys and crypto assets.
When was this discovered?
Security researchers identified and reported the malicious code on December 21, 2025.
Is my money safe if I used Polymarket directly?
Yes, this only affects users who downloaded and used the unofficial copy-trading bot, not the Polymarket platform itself.
What should I do if I used this bot?
Immediately transfer all funds to new wallets, revoke any connected permissions, and consider those private keys compromised.
How can I avoid similar scams in the future?
Never share private keys with third-party tools, thoroughly audit any code you run, and use hardware wallets for significant holdings.
