Predictive market platform Polymarket said on Thursday that it has partnered with analytics firm Chainalysis to deploy a blockchain-based market monitoring tool designed to detect insider trading and enforce compliance rules on the platform.
This collaboration covers investigation tools for generating blockchain verification evidence, on-chain threat defense, and professional services including training, development of detection technologies, and complex investigations. At the core of the partnership are detection models built on Chainalysis data solutions that identify patterns indicating insider information leaks in prediction markets.
This partnership marks Polymarket’s strategic shift toward institutional standards, following previous regulatory challenges. In 2022, Polymarket reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) over allegations of offering illegal binary options contracts. Since then, the company has launched a regulated version of its platform for U.S. users, reportedlyseeking to bring its broader platform backto the country.
Last week, the Department of Justice arrested and charged an active-duty U.S. Army soldier for allegedly using classified information to place bets on the platform before the arrest of Venezuela’s former president, Nicolás Maduro.
It is alleged that Cannon Ken Van Dyke used insider information to place over $33,000 in bets on the Polymarket platform, wagering on the operations and potential downfall of the Maduro regime, ultimately winning nearly $410,000 in payouts. plead not guilty This week, Polymarket was accused of multiple charges. The company stated that it discovered this misconduct and reported it to authorities prior to the arrest.
"Polymarket chose to build on-chain because transparency is critical—our platform demonstrates what markets look like when trading is open, traceable, and accountable from the ground up," said Shayne Coplan, founder and CEO of Polymarket, in a statement on Thursday.Announcement"Partnering with Chainalysis combines this transparency with monitoring and law enforcement infrastructure to support it."
This compliance upgrade comes as Polymarket experiences explosive growth. The platform initially gained mainstream recognition in 2024 due to election betting, but usage has surged since 2026, with weekly trading volumes consistently approaching or exceeding $1 billion for much of the year.
Polymarket's rapid growth has attracted investor attention, with reports indicating the company is seeking funding.An additional $400 millionat a $15 billion valuation. This week, the platformupgraded its exchange infrastructureintroducing the CTF Exchange V2 smart contract, a rewritten central limit order book engine, and Polymarket USD (pUSD) as the new collateral token.
Jonathan Levin, Co-founder and CEO of Chainalysis, stated: "On the Polymarket platform, all trades and settlements are recorded on the blockchain—this level of transparency is unmatched by traditional markets. Combining this transparency with Chainalysis’s data and expertise sets a new standard for market integrity. Through this partnership, on-chain markets are poised to become the most trusted source for understanding global events."