Polymarket Enhances Surveillance to Prevent Midterm Insider Trading

Prediction market company Polymarket is deploying enhanced surveillance and transparency measures to prevent insider trading and misconduct before the U.S. midterm elections. The company is utilizing machine learning, blockchain analytics, and trade surveillance to identify anomalous activity on its platform.

Shana Bautista, the new global head of investigations and intelligence, stated that the company is launching a dedicated web page to provide more detail on its market integrity program and its cooperation with law enforcement. Polymarket has already referred more than 100 cases to authorities.

The company continues to work on barring U.S. users from its international platform to comply with a 2022 settlement with the Commodity Futures Trading Commission. However, Polymarket recently re-entered the U.S. market through the acquisition of a registered exchange. CEO Shayne Coplan noted that the company was cleared of wrongdoing after federal regulators dropped a probe into a potential breach of the previous settlement.