Polymarket hires Chainalysis for on-chain insider surveillance
Polymarket will use Chainalysis tools and custom anomaly-detection models to monitor trades on its decentralized prediction markets and produce blockchain-verified evidence for regulators.
Polymarket selected blockchain intelligence firm Chainalysis in 2024 to deploy on-chain surveillance and custom anomaly-detection models across its decentralized prediction markets. The system will monitor trades recorded on public ledgers and produce blockchain-verified evidence for regulators.
Chainalysis, based in New York, will provide investigative software and analytic models built on Chainalysis Data Solutions. The tools are intended to enforce Polymarket’s Market Integrity Rules and expand the platform’s existing monitoring for Terms of Use violations.
Because Polymarket records trades, positions and settlements on public blockchains, Chainalysis will run analytics on that data to flag unusual patterns. Models will look for concentrated buying, coordinated trades ahead of public events, and other patterns that may indicate use of non-public information.
Flagged activity can generate immutable transaction records that Polymarket can share with regulators or law enforcement in formal inquiries, the companies said. The deployment covers multiple Chainalysis product lines, including tools designed to produce blockchain-verified evidence for investigations.
Shayne Coplan, Polymarket’s founder and CEO, commented that the platform was built on-chain to provide transparency and that open, traceable records support accountability.
Jonathan Levin, Chainalysis co-founder and CEO, noted that combining on-chain records with Chainalysis data and methods can improve oversight of prediction markets.
Polymarket hosts markets that let users trade contracts tied to the outcomes of political events and other real-world occurrences. The platform has faced scrutiny from critics and some government officials who have called for tighter regulation and limits on certain event markets.
Polymarket said it expects the additional monitoring to strengthen its ability to detect and respond to suspicious trading before and after settlements and to support formal investigations with verifiable blockchain records.
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