Prediction market platform Polymarket has partnered with blockchain analytics firm Chainalysis to deploy market surveillance tools aimed at detecting insider trading and enforcing compliance. The partnership brings institutional-grade oversight to the platform, including investigative tools for generating blockchain-verified evidence, on-chain threat prevention, and professional training.
This strategic move comes just days after the Department of Justice arrested an active-duty U.S. Army soldier, Gannon Ken Van Dyke, for allegedly using confidential information to place over $33,000 in bets on Polymarket ahead of former Venezuelan President Nicolás Maduro's capture. Van Dyke pleaded not guilty to the charges.
Polymarket says it detected the conduct and reported it to authorities before the arrest. The platform has faced regulatory challenges in the past, settling with the CFTC in 2022 for offering illicit binary options contracts. It now operates a regulated version for U.S. users and is reportedly seeking to raise $400 million at a $15 billion valuation.
With weekly trading volumes approaching $1 billion, the platform recently upgraded its exchange infrastructure, introducing CTF Exchange V2 smart contracts and a new collateral token, Polymarket USD (pUSD).