Insider trading backlash forces Polymarket to step up surveillance

📄Full Article· Automatically extracted by trafilatura2831 words

Insider trading backlash forces Polymarket to step up surveillance Polymarket has selected Chainalysis to flag suspicious trades as insider betting concerns mount and regulators tighten scrutiny on prediction markets. Prediction market platform Polymarket is rolling out new monitoring and detection tools following backlash over alleged insider-informed betting activity, partnering with blockchain analytics company Chainalysis to strengthen oversight. Polymarket said Thursday it selected Chainalysis to provide an onchain market integrity solution aimed at monitoring trading activity and enforcing platform rules. The detection model is “designed to surface patterns consistent with insider knowledge in prediction markets,” the company said. The move follows a string of controversies in which traders appeared to profit from non-public or potentially manipulated information tied to real-world events. Recent incidents have intensified scrutiny from regulators and the public. In April, the US Justice Department charged a US Army soldier with using classified knowledge to place large winning bets on the US capture of Nicolas Maduro. Source: Cointelegraph on X In response, Polymarket is bolstering safeguards to flag suspicious trading behavior, aiming to curb insider activity and restore confidence in its markets. As Cointelegraph recently reported, the company has already implemented stricter trading safeguards to address concerns about manipulation. The developments underscore mounting regulatory pressure on crypto-based prediction markets, which critics say enable speculation on sensitive geopolitical and real-world events. Related: Kalshi mulls crypto expansion with perpetual futures launch: Report Prediction markets draw surging volumes — and rising scrutiny Prediction markets are attracting renewed attention as their size and scope continue to expand. A recent report by Bitget Wallet and Polymarket found that monthly trading volumes reached $25.7 billion in March, even as the broader crypto market remained in a prolonged slump. The data suggests retail participants are driving much of the activity, with a shift away from one-off bets toward more sustained engagement, particularly in sports-related markets. Prediction market trading volumes. Source: BitGet Wallet At the same time, not all of the attention has been positive. Alongside concerns over market manipulation, a regulatory tug-of-war is emerging between US states and the federal Commodity Futures Trading Commission over how prediction markets should be governed. New York has recently filed lawsuits against exchange operators Coinbase Financial Markets and Gemini Titan, alleging that their prediction market offerings violate state gambling laws. Related: New York targets Coinbase, Gemini in fresh crackdown on prediction markets

Data Status✓ Full text extractedRead Original (CoinTelegraph)

🔍Historical Similar Events· Keyword + Asset Matching6 items

2026-04-30

Polymarket Launches Market Integrity Tools Following Soldier’s Insider Trading Arrest

2026-04-30

The Green Beret was just the start: New data suggests military insider trading crisis on Polymarket

2026-04-28

Soldier Charged in Polymarket Insider Trading Case Pleads Not Guilty

2026-04-25

CFTC Charges Polymarket Trader in First Event Contract Insider Trading Case

2026-04-23

US Soldier Charged for Alleged $400K Polymarket Insider Trading on Maduro Removal