The prediction market platform escalated nearly 100 cases to authorities after detecting $200 million in flagged trades.
Polymarket has referred nearly 100 wallets to law enforcement for suspected insider trading, following an upgrade to its surveillance systems. The platform identified approximately $200 million in trades during the first half of 2026 linked to potential insider activity, primarily in geopolitical markets tied to Iran and Venezuela.
The flagged trades represent a fraction of Polymarket’s total volume but highlight growing scrutiny of prediction markets. Prior reports indicated limited enforcement actions in the sector, though regulatory interest has increased amid rising crypto-based trading activity.
No immediate market reaction was disclosed, but the move signals heightened compliance efforts in decentralized markets.