Polymarket has enlisted blockchain data firm Chainalysis to help it police insider trading and “all types of fraud and market manipulation” as the prediction market seeks to raise $400 million and gain approval to relaunch in the U.S., according to a statement from Thursday.
“This sends a clear signal: insider trading, in addition to all types of fraud and market manipulation, is not welcome on Polymarket, and those who attempt it will be identified,” the company said, adding that the deal includes using Chainalysis’ “investigative tools to produce blockchain-verified evidence for proactive and reactive engagement with law enforcement and regulatory inquiries.”
The move to better police the platform comes as Polymarket, which calls itself the world’s largest prediction market, seeks to raise $400 million at a $15 billion valuation, according to a recent report from The Information. Polymarket is also pushing to reenter the U.S. market pending approval from the Commodity Futures Trading Commission.
Polymarket previously settled with the CFTC in 2022 for allegedly offering illicit binary options contracts. The prediction market then launched a U.S. version of its platform after acquiring derivatives exchange QCEX last year, a platform regulated by the CFTC.
Meanwhile, both Polymarket and Kalshi have attempted to address concerns about insider trading on the platforms as both companies aggressively pursue multi-billion dollar valuations and market dominance. Trading volumes on both exchanges have been growing as consumers embrace opportunities to wager on the outcomes of a wide variety of events, including sports, politics, economics, pop culture, and even the weather.
‘Transparency matters’
“Polymarket was built on-chain because transparency matters, and our platform shows what markets can look like when trades are open, traceable, and accountable by design,” Polymarket founder and CEO Shayne Coplan said Thursday. “This partnership with Chainalysis pairs that transparency with the monitoring and enforcement infrastructure to back it up, and helps us continue to build the most trusted source of truth in markets.”
Last week, the Department of Justice arrested an active-duty U.S. Army soldier for allegedly using confidential information to place bets on Polymarket ahead of former Venezuelan President Nicolás Maduro’s capture earlier this year.
Separately, an academic paper analyzing every Polymarket transaction from 2023 through 2025 concluded that the platform’s accuracy reflects “the wisdom of an informed minority, not the wisdom of the crowd.”
According to the study, 3.14% of accounts qualified as “skilled winners,” meaning their order flow consistently predicted both short-term price moves and final outcomes. Together with market makers, this informed minority captured more than 30% of all gains while making up under 3.5% of accounts.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
