In brief – Polymarket has investigated “dozens” of bets on midterm election markets, its head of global intelligence and investigations, Shana Bautista, told NPR. – At least two of those cases have been referred to the CFTC, according to a person familiar with the probes cited…
NPR. – Bautista said a new surveillance system draws on campaign finance, crypto and banking data and generates “hundreds of alerts a day” ahead of the November 3 vote. Polymarket has investigated “dozens” of bets on its midterm election markets for possible insider trading and manipulation, the company’s head of global intelligence and investigations, Shana Bautista, told NPR
At least two of those investigations have been referred to the Commodity Futures Trading Commission, NPR reported, citing a person familiar with the probes. Bautista, a former FBI official and crypto analyst who joined Polymarket in June, said her team of 16 is policing election bets with a new surveillance system ahead of the November 3 vote. “If you have information that you have a duty to protect, don’t trade on it,” she said. “It’s explicitly against our terms of use on both platforms, but also is against the law. If you decide that you are smarter and can do it, we will find you.” Her team monitors both Polymarket’s U.S.-regulated exchange, which requires users to verify their identities, and Polymarket International, where users can trade anonymously with crypto.
Even so, Bautista said crypto trades are rarely fully anonymous. “There’s never been a case that we work where we haven’t been able to identify, potentially, who these people are,” she said. The system pulls in data from social media, Federal Election Commission filings, crypto companies, banking partners and statistical models, and alerts Bautista when a user trips enough internal red flags. “We’re getting hundreds of alerts a day,” she said. She declined to share the specific criteria, citing system security.