Polymarket and Kalshi are strengthening measures to prevent insider trading as scrutiny grows over prediction market integrity.
Polymarket updated its platform-wide integrity rules, explicitly banning trades based on insider information or illegal tips. The firm uses a multi-layered monitoring system across its DeFi and U.S. platforms, partnering with Palantir to develop surveillance models for sports markets.
Kalshi took a proactive approach, banning individuals tied to college or professional sports from trading on related events. It also implemented preemptive screening using custom lists to block athletes, coaches, and politicians from exploiting inside knowledge.
The moves follow congressional attention, including a bill targeting federal employees’ use of prediction markets. High-profile cases include an MrBeast employee fined and fired for trading on video content, and two Israelis arrested for allegedly betting on military operations using classified data.
Both platforms now allow users to report suspicious activity-Polymarket via email or Discord, Kalshi through built-in whistleblower tools.