Polymarket Adds New Detection Tools After Insider Bet Backlash

Polymarket is partnering with blockchain analytics firm Chainalysis Inc. to help police its platform as prediction markets grapple with increased scrutiny over insider trading.

Tools built by Chainalysis for Polymarket’s cryptocurrency-based exchange include a detection model “designed to surface patterns consistent with insider knowledge in prediction markets,” Polymarket said on Thursday. Other tools will produce evidence for law enforcement and regulators, and provide increased protection against cybersecurity threats.

Prediction markets allow users to place yes-or-no bets on real-world events, covering everything from elections to sports games. Platforms have faced intense pressure to crack down on insider trading in recent months, ...