Polymarket taps Chainalysis to police insider trading as it seeks $15 billion valuation, CFTC signoff
Polymarket partners with Chainalysis to combat insider trading and fraud, aiming for a $15 billion valuation and CFTC approval.Summary
Prediction market Polymarket has partnered with blockchain data firm Chainalysis to enhance its efforts against insider trading and market manipulation. This collaboration aims to provide blockchain-verified evidence for law enforcement and regulatory inquiries.
The move comes as Polymarket, seeking a $15 billion valuation and aiming to raise $400 million, is also pursuing approval from the Commodity Futures Trading Commission (CFTC) to re-enter the U.S. market. Previously, Polymarket settled with the CFTC in 2022 for offering illicit binary options contracts and later acquired CFTC-regulated derivatives exchange QCEX to facilitate its U.S. relaunch.
Polymarket founder and CEO Shayne Coplan emphasized the platform's on-chain transparency and stated that the Chainalysis partnership adds necessary monitoring and enforcement infrastructure. This development follows recent events, including a Department of Justice arrest of a soldier for alleged insider trading on Polymarket and an academic study suggesting that a small, informed minority drives trading gains on the platform.
(Source：The Block)