Polymarket partners with Chainalysis to monitor insider trading

Prediction market platform Polymarket has partnered with blockchain analytics firm Chainalysis to enhance its monitoring of insider trading, Bloomberg reported. Chainalysis will build a model to detect trading patterns consistent with the use of inside information and will also operate tools to provide evidence to law enforcement and regulatory authorities. The move comes as the prediction market industry faces growing pressure amid a series of insider trading allegations. A U.S. Army soldier was indicted for allegedly earning approximately $400,000 on Polymarket using classified information, and two people were indicted in Israel on charges of betting with confidential information. Last month, Polymarket introduced a new rule prohibiting trades based on stolen classified information or illegal tips. The U.S. Commodity Futures Trading Commission (CFTC) has also stated its intention to take action against trades that use privileged information.