Key facts
- Polymarket investigated dozens of midterm election bets for insider trading and manipulation.
- Two investigations were referred to the CFTC.
- A new surveillance system generates hundreds of alerts daily.
- Polymarket can potentially identify users even in anonymous crypto trades.
Polymarket has investigated "dozens" of bets placed on its midterm election markets for potential insider trading and manipulation, according to Shana Bautista, the company's head of global intelligence and investigations. At least two of these cases have been referred to the Commodity Futures Trading Commission (CFTC), NPR reported, citing a person familiar with the probes. Bautista stated that a new surveillance system, which analyzes campaign finance, crypto, and banking data, generates hundreds of alerts daily ahead of the November 3 vote. The system monitors both Polymarket's regulated U.S. exchange and its international platform, where users can trade anonymously with crypto, though Bautista noted that crypto trades are rarely fully anonymous and users can often be identified. Polymarket partnered with blockchain analytics firm Chainalysis on market surveillance tools in April.