Polymarket taps Chainalysis for on-chain surveillance to hunt insider trades
Polymarket partners with Chainalysis to deploy on-chain surveillance targeting insider trading and manipulation as volumes hit $7B monthly and regulation intensifies.Polymarket has selected Chainalysis to power a first-of-its-kind, fully on-chain market integrity monitoring system aimed at detecting insider trading and market manipulation across its prediction markets.The rollout lands two days after Polymarkets April 28 exchange upgrade, which introduced new smart contracts, a rebuilt order book, and pUSD, an ERC-20 collateral token on Polygon backed 1:1 by USDC.Record trading volumes — including a single-day high of $425 million and more than $7 billion in monthly volume this year — are driving the push toward institutional-grade surveillance and compliance. Polymarket has partnered with Chainalysis to deploy what it calls “a first-of-its-kind on-chain solution to monitor trading activity and enforce its Market Integrity Rules” across its DeFi prediction market platform, formalizing a surveillance layer explicitly designed to identify insider trading, fraud, and manipulation in real time. In the announcement, Polymarket said that because “every trade, position, and settlement is recorded on a public blockchain,” that transparency can now “be harnessed to set a new public standard for market integrity in prediction markets and beyond,” with Chainalysis providing anomaly detection tuned to patterns “consistent with insider