Security Researchers Warn of Malicious Code in Polymarket Copy-Trading Bot on GitHub (2025 Alert)
- What’s the Story Behind the Polymarket Bot Scandal?
- How Did the Malicious Code Evade Detection?
- What Should Affected Users Do Immediately?
- Why Are Crypto Trading Bots a Prime Target?
- How Can Traders Avoid Private Key Exploits?
- Is Open-Source Software Inherently Risky?
- What’s Next for Polymarket and GitHub Security?
- FAQs: Polymarket Bot Security Scare
A seemingly harmless open-source copy-trading bot for Polymarket, hosted on GitHub, has been exposed as a Trojan horse for stealing private keys. The bot, created by user "Trust412," contained hidden malicious code across multiple commits and dependencies, potentially compromising users' crypto wallets. SlowMist and community researchers sounded the alarm, urging traders to audit third-party scripts thoroughly. Here’s what happened—and how to protect yourself.
What’s the Story Behind the Polymarket Bot Scandal?
On December 21, 2023, security researchers flagged a GitHub repository named "polymarket-copy-trading-bot" for containing deliberately hidden malware. The bot, designed to mimic successful traders on Polymarket, secretly scanned users’ configuration files, extracted private keys, and sent them to a remote server controlled by hackers. SlowMist’s Information Security Director amplified warnings from community member @hunterweb303, revealing this wasn’t an isolated incident—attackers have repeatedly weaponized GitHub repositories.
How Did the Malicious Code Evade Detection?
The attacker, "Trust412," employed a sophisticated supply-chain attack. By spreading malicious code across incremental commits and dependencies, they made the bot appear legitimate during casual reviews. One commit might’ve fixed a typo; another quietly inserted a backdoor. Users who installed the bot to automate trading unknowingly exposed their private keys—a classic case of "trust, but verify" gone wrong. As noted by analyst 23pds, this method has been used before and will likely resurface.
What Should Affected Users Do Immediately?
If you’ve downloaded this bot:
- Delete the repository and any associated files.
- Assume compromised wallets: Transfer funds to a new wallet ASAP.
- Audit API keys: Revoke permissions granted to third-party tools.
Remember: Polymarket itself wasn’t hacked. The risk stems from unofficial bots requiring excessive permissions.
Why Are Crypto Trading Bots a Prime Target?
Crypto bots sit at the intersection of high-value assets and automation—a hacker’s dream. According to CoinMarketCap data, copy-trading platforms saw a 300% surge in users last year, many lured by promises of passive income. But as the BTCC research team notes, "Convenience often overshadows security." This incident mirrors 2022’s "Fake Ledger Live" attack, where malicious npm packages stole $500K+ in crypto.
How Can Traders Avoid Private Key Exploits?
Four rules to live by:
- Never share private keys: Even with "trusted" bots.
- Use hardware wallets for transaction signing.
- Verify dependencies: Tools like Socket.dev scan GitHub repos for risks.
- Monitor transfers: Set up alerts for unexpected withdrawals.
Is Open-Source Software Inherently Risky?
Not inherently—but it requires diligence. The Linux Foundation’s 2024 report found that 78% of codebases contain outdated dependencies with known vulnerabilities. The solution? Treat open-source tools like a stranger’s USB stick: useful but potentially dangerous. Always review commit histories and contributor reputations.
What’s Next for Polymarket and GitHub Security?
GitHub has since taken down the malicious repo, but the cat-and-mouse game continues. Polymarket issued a statement distancing itself from third-party bots, while SlowMist urges platforms to integrate real-time code audits. For now, traders should stick to audited tools like those vetted by BTCC’s marketplace—or better yet, hone their own strategies.
FAQs: Polymarket Bot Security Scare
How was the malicious code discovered?
Community researchers spotted anomalies in the bot’s network requests, prompting deeper analysis that revealed key-logging functionality.
Are other Polymarket bots affected?
While this specific repo was flagged, similar incidents have occurred. Always assume risk with unvetted third-party tools.
Can exchanges like BTCC prevent such attacks?
Exchanges can warn users but ultimately can’t control private key management. Self-custody demands personal responsibility.
