On Thursday, Polymarket announced a partnership with analytics firm Chainalysis to implement blockchain-based surveillance tools aimed at detecting insider trading and ensuring compliance on the platform. The collaboration will include tools for creating blockchain-verified evidence, preventing threats through on-chain methods, and providing professional services such as training, detection development, and conducting intricate investigations. A key component of this partnership is a detection model developed by Chainalysis Data Solutions to identify patterns indicative of insider knowledge in prediction markets.
This strategic move marks Polymarket’s shift toward meeting institutional standards amid previous regulatory challenges. The platform settled with the CFTC in 2022 over claims that it offered unlawful binary options contracts. Since then, Polymarket has launched a regulated version for U.S. users and is reportedly working to reintroduce its full platform to the country.
Last week, the Department of Justice arrested an active-duty U.S. Army soldier on charges of using confidential information to place bets on Polymarket ahead of former Venezuelan President Nicolás Maduro’s arrest. Gannon Ken Van Dyke allegedly used insider information to wager over $33,000 on markets related to Maduro’s capture and subsequent removal, netting nearly $410,000 in winnings. This week, Van Dyke pleaded not guilty to the charges. Polymarket stated it identified the suspicious activity and informed authorities before his arrest.
“Polymarket was designed with transparency at its core; our platform exemplifies what markets can achieve when trades are open, traceable, and accountable by design,” said Shayne Coplan, founder and CEO of Polymarket, in Thursday’s announcement. “By partnering with Chainalysis, we bolster that transparency with the necessary monitoring and enforcement infrastructure.”
Polymarket’s compliance enhancements coincide with its rapid growth. The platform gained significant attention in 2024 through election-related bets but saw a surge in usage in 2026, with weekly trading volumes nearing or surpassing $1 billion for most of the year.
This expansion has piqued investor interest, as Polymarket reportedly aims to raise another $400 million at a $15 billion valuation. Recently, the platform upgraded its exchange infrastructure, introducing CTF Exchange V2 smart contracts, an updated central limit order book engine, and the new collateral token Polymarket USD (pUSD).
“All trades and settlements on Polymarket are recorded on a blockchain, offering transparency that traditional markets lack,” said Jonathan Levin, co-founder and CEO of Chainalysis. “By combining this transparency with Chainalysis’ data and expertise, we set a new benchmark for market integrity enforcement. This collaboration positions on-chain markets as the most reliable means of understanding world events.”