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Polymarket said it has referred nearly 100 suspicious crypto wallets to law enforcement as the prediction-market platform faces growing scrutiny over possible insider trading.
According to the company’s chief legal officer, Neal Kumar, Polymarket has strengthened its surveillance around insider-trading risks. The move follows a Bloomberg analysis of Polysights data that found about $200 million in Polymarket trades during the first half of 2026 showed characteristics associated with potential insider activity. Much of the flagged activity reportedly involved geopolitical markets tied to Iran and Venezuela.
The source article notes that suspicious labels do not prove insider trading, and a referral does not mean charges will follow. It also does not identify which wallets were referred or which authorities received the referrals.
Recent U.S. enforcement actions have added to the pressure on prediction markets.
The Department of Justice accused Army Master Sergeant Gannon Ken Van Dyke of using classified information about a U.S. military operation targeting Venezuelan President Nicolás Maduro to place Polymarket trades. Prosecutors said he made about $409,881 after placing more than $33,000 in bets linked to Maduro’s removal. The Commodity Futures Trading Commission filed a parallel case.
In a separate matter, U.S. prosecutors and the CFTC charged Google engineer Michele Spagnuolo over allegations that he used confidential Google search-trend information to place about $2.7 million in prediction-market wagers and generate about $1.2 million in profit.
The article also points to the scale of some sensitive event markets. More than $529 million reportedly traded on Polymarket markets tied to the timing of strikes on Iran.
For players and market users, the immediate takeaway is not that wrongdoing has been proven in these trades, but that prediction-market activity is drawing closer review from operators and regulators. The broader backdrop is tightening oversight in both the U.S. and Europe, including France’s move to order internet service providers to block Polymarket after regulators cited unauthorized gambling, weak identity checks and market-integrity concerns.
What to watch next is whether any of Polymarket’s wallet referrals lead to public investigations or charges, and whether U.S. regulators take additional steps affecting event-contract platforms and their users.
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Source: As reported by crypto.news.
