Polymarket: User Funds and Market Settlement Secure, Incident Due to Internal Operations Wallet Private Key Leak
May 22 — Polymarket staffer Shantikiran Chanal took to social media to address earlier concerns from ZachXBT about a potential attack targeting Polymarket’s UMA CTF Adapter contract. Chanal confirmed user funds and market settlements remain fully safe, noting an initial investigation traced the incident to a leaked private key of an internal operations wallet — not a vulnerability in the contract or Polymarket’s core infrastructure. He added that he will continue sharing updates as the investigation progresses.
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Korean Regulator Launches Investigation into Whether Polymarket Violated Anti-Gambling Law
May 22 – A Bloomberg report states that South Korea’s Korea Communications Standards Commission (KCSC) has officially launched a review of prediction market platform Polymarket to assess whether it is offering illegal gambling content that violates South Korea’s anti-gambling laws.
South Korea enforces strict gambling restrictions, limiting such activities to only nationally authorized entities that operate programs like horse racing and sports betting. However, Polymarket contends that odds on its platform are set by market participants buying and selling contracts, not by the platform itself – meaning the service should not be covered under South Korea’s anti-gambling regulations.
Notably, South Korea will hold local elections this June, and Polymarket currently hosts multiple prediction markets tied to the election outcomes.
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Heavy Crypto Exposure Drags Down Performance, SkyBridge Flagship Fund Records Losses for Two Consecutive Quarters
Bloomberg, May 22 — Anthony Scaramucci’s flagship SkyBridge Opportunity Fund has posted back-to-back quarterly losses, driven by its heavy cryptocurrency-related asset holdings, according to data. The fund manages roughly $1.3 billion in assets under management (AUM), with 64% allocated to digital and crypto-focused investments, including crypto hedge funds, Bitcoin investment vehicles, and private crypto companies.
Performance figures confirm the downward trend: the SkyBridge Opportunity Fund dropped 12.9% in the first quarter of 2026, after an 18% decline in the fourth quarter of 2025. Its top three holdings are Brevan Howard Digital Asset Multi-Strategy Fund (17.5%), Galaxy Institutional Bitcoin Fund (9.58%), and Canada’s Purpose Bitcoin ETF (8.79%).
Adding to investor frustration, the fund’s latest public tender offer only honored a tiny portion of redemption requests. Investors sought to redeem 792,633.965 shares, while the fund repurchased just 64,378.34 shares on a pro-rata ba
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Securities and Futures Commission Enhances Measures to Counter Fake Documents and Money Laundering Risks and Raises Account Opening Standards
May 22. The Securities and Futures Commission (SFC) of Hong Kong issued a circular today outlining new monitoring measures for account openings and ongoing customer relationship maintenance. The circular follows an SFC review of account-opening practices at 12 securities brokers, which identified key deficiencies: insufficient due diligence on account opening documents, acceptance of suspicious or forged paperwork during the account setup process, and weaknesses in managing cross-border agency relationships with overseas intermediaries.
The SFC expressed deep concern that customer accounts could be improperly used for suspicious or unlawful transactions, thereby raising money laundering and terrorist financing risks.
The regulator has instructed all licensed corporations to conduct internal reviews as soon as practicable to detect whether any suspicious or forged documents were accepted for account openings. It also outlined additional requirements for licensed firms handling account
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