Prediction market platform Polymarket has partnered with blockchain analytics firm Chainalysis to monitor trading activity and detect potential insider trading. The collaboration introduces onchain tools to flag suspicious patterns amid rising regulatory scrutiny. Polymarket announced the move on Thursday.
Polymarket selected Chainalysis to provide an onchain market integrity solution, designed to surface patterns consistent with insider knowledge in prediction markets. The firms announced the partnership on Thursday, April 30, 2026. Chainalysis will use its investigative software and real-time monitoring to enforce platform rules and share evidence with regulators if needed, as Polymarket aims to strengthen oversight following backlash over alleged insider-informed bets. Polymarket CEO Shayne Coplan stated, “Polymarket was built onchain because transparency matters, and our platform shows what markets can look like when trades are open, traceable, and accountable by design.” He described prediction markets as “a very useful thermometer of the world,” where prices reflect probabilities of real-world outcomes. The partnership signals Polymarket's effort to reposition itself as a credible financial platform with standards akin to traditional exchanges. The move responds to recent controversies, including an April incident where the US Justice Department charged a US Army soldier with using classified information to place winning bets on the US capture of Nicolas Maduro. On Thursday, the US Senate passed an amendment prohibiting senators from trading on prediction markets. These developments highlight intensifying pressure on crypto-based prediction markets amid surging volumes, which reached $25.7 billion in March according to a Bitget Wallet and Polymarket report.
