Prediction market bot safety:
key stealers & US rules.

How fake bots steal wallets

• Hijacked GitHub accounts. StepSecurity found that the verified dev-protocol GitHub organization had been taken over and was hosting a Polymarket copy-trading bot. The bot really did connect to Polymarket, but two of its npm dependencies used names one letter off from real packages. Those packages sent the .env file holding the wallet key to the attacker and opened an SSH backdoor. (StepSecurity)
• Install scripts that grab your key. GitHub's advisory GHSA-cpc2-2h86-m44p describes 9 npm packages posing as Polymarket trading tools. A script that runs during install read PRIVATE_KEY from .env or asked you for it, then sent it to the attacker's server, while the tools still worked as cover. (GitHub Advisory)
• State-backed hackers. Panther documented an npm package from April 2026 that targets Polymarket bot developers. It runs as soon as it's loaded, steals Polymarket API keys and wallet private keys, and installs an SSH backdoor. Panther attributes it to North Korea's Lazarus Group. With the wallet key, an attacker can withdraw the whole USDC balance. (Panther)

Checks before you connect anything

• Never give a bot your seed phrase (the 12 or 24 words). Hosted tools should get a limited key that can trade but can't withdraw, or no key at all.
• For code you run yourself, read every dependency in package.json or requirements.txt. Look for names one letter off from popular packages, and for postinstall scripts.
• Search the code for where your key is read. It should only be used to sign orders, never sent anywhere.
• Use a separate wallet holding only what you're willing to lose, and try paper trading first.
• Treat promised returns, star counts and polished READMEs as marketing. The hijacked repo above had hundreds of stars.
• If you already ran a suspicious bot: move your funds to a new wallet, stop using the old key, rotate your API keys and check ~/.ssh/authorized_keys (StepSecurity).

US readers: which platforms are open to you

• Polymarket International (polymarket.com) is closed to US traders. Polymarket says users in restricted places, including the United States, may not trade there or use tools that get around its location blocks, and that it actively detects this (Polymarket). Reuters reported on Oct 27, 2026 that the CFTC is investigating whether Polymarket broke a 2022 settlement in which it promised to keep US users off that site (Reuters via Investing.com, CNBC). An investigation is not a finding of wrongdoing.
• Polymarket US is a separate exchange for US traders. Its operator, QCX LLC, is listed by the CFTC as a designated contract market (CFTC). State access varies. On May 29, 2026 a Nevada state court granted the Nevada Gaming Control Board a preliminary injunction against QCX LLC (Nevada Gaming Control Board press release, June 1, 2026), which bars it from offering sports, election and entertainment contracts in Nevada while the case continues (Nevada Attorney General).
• Kalshi says it is regulated by the CFTC as a Designated Contract Market (Kalshi: How is Kalshi regulated?). States have challenged its sports contracts in court, with split results so far. A federal appeals court ruled New Jersey can't regulate them (Reuters). The Ninth Circuit sided with Nevada (Gambling Insider), and Nevada's regulator says Kalshi is barred from sports, election and entertainment contracts in the state (Nevada Gaming Control Board, June 1, 2026 release). Tools like Bot for Kalshi trade through your own Kalshi API key.
• Most Polymarket copy-trading bots work on the international site. If you're in the US, they aren't for you, and using a VPN breaks Polymarket's terms.

Not legal or financial advice. Rules change quickly; check the platform's own terms for where you live. Sources checked 2026-11-02. See the prediction market tools list.