Polymarket has launched investigations into dozens of wagers placed on its midterm election markets. The company is actively scrutinizing potential instances of insider trading and market manipulation ahead of the November 3 vote.
Shana Bautista, head of global intelligence and investigations, leads a 16-person team that utilizes a new surveillance system. This platform aggregates data from social media, banking partners, and statistical models to flag suspicious activity, generating hundreds of alerts daily.
At least two of these internal investigations have been referred to the Commodity Futures Trading Commission. Bautista noted that while some users trade anonymously via crypto, the platform has consistently been able to identify individuals involved in illicit activity.
The company previously partnered with Chainalysis in April to enhance its surveillance capabilities. This move followed a case involving a U.S. Army soldier who placed over $33 000 in bets using classified information, resulting in winnings of nearly $410 000.
Market rival Kalshi has also implemented its own risk-scoring framework and employment disclosure requirements. Kalshi reported conducting over 150 investigations this year, with more than 20 cases referred to law enforcement authorities.
