Critical Security Alert: Malicious Code Found in Polymarket Trading Bot Could Compromise Your Private Keys

Security experts have raised alarm about a dangerous threat lurking in automated trading tools. A developer disguised malicious code within a Polymarket copy trading bot, creating a sophisticated attack that targets users’ most sensitive digital assets. When users launch the application, it silently exfiltrates the “.env” file—a configuration file commonly used to store wallet private keys—and transmits this data directly to attacker-controlled servers.

The Attack: Hidden Threats in Your Trading Tools

The perpetrator employed a deceptive development technique, strategically crafting and repeatedly modifying code commits on GitHub to obscure the malicious payload. This deliberate obfuscation demonstrates the attacker’s sophistication in evading detection during code review processes. The “.env” file, essential for storing cryptographic credentials, becomes the crown jewel once the bot gains access to it. Private key theft represents one of the most devastating compromises in cryptocurrency, enabling complete account takeover and fund theft.

SlowMist CISO Highlights Rising Exploitation Patterns

In late December 2025, SlowMist Technology’s Chief Information Security Officer, 23pds, shared this critical warning with the security community through a retweeted post. The alert emphasized that hidden malicious code in development repositories represents an increasingly prevalent attack vector. “This is not the first time such exploitation occurs, and it will not be the last,” 23pds cautioned, underscoring the cyclical nature of this particular vulnerability class.

Protecting Yourself: Essential Safeguards Against Malicious Code Threats

Users must adopt heightened vigilance when downloading third-party trading applications. Verify the source authenticity, review code repositories for suspicious patterns, and never download tools from unverified developers. For sensitive operations involving private keys, consider using hardware wallets or air-gapped systems that never expose credentials online. Regular security audits of your development environment configuration files remain essential in this threat landscape.