Polymarket hires Chainalysis after insider bet

Polymarket has hired blockchain analytics firm Chainalysis to add on-chain detection tools and train staff after a $410,000 wager on the reported capture of Venezuelan President Nicolás Maduro raised insider-trading concerns.

Under the agreement, Chainalysis will build a detection model using its Data Solutions platform to identify wagers that may rely on nonpublic information. The model will be integrated into Polymarket’s existing multi-layer security systems. Chainalysis will also provide staff training, expand detection capabilities and assist with complex investigations. The companies said their work will include measures to reinforce on-chain security and improve transaction monitoring.

The engagement follows a federal investigation in which a U.S. special forces member identified in court filings as Van Dyke is accused of profiting more than $400,000 from classified information tied to the reported capture of Maduro. Van Dyke pleaded not guilty to fraud charges, was released on $250,000 bail and faces travel restrictions that confine him to parts of North Carolina, New York and California. The Department of Justice described the case as its first insider-trading prosecution linked to a prediction market platform.

Polymarket founder and CEO Shayne Coplan wrote in a statement, “This partnership with Chainalysis pairs that transparency with the monitoring and enforcement infrastructure to back it up, and helps us continue to build the most trusted source of truth in markets.” Jonathan Levin, co-founder and CEO of Chainalysis, said the collaboration aims to help on-chain markets become reliable tools for following global news in real time.

Political and regulatory responses have followed the scandal. The U.S. Senate voted unanimously to bar senators and their staff from trading on prediction platforms. Senator Bernie Moreno led the resolution and told colleagues, “United States Senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period.” Polymarket publicly supported the Senate action, saying it aligns with the company’s anti-insider policies.

Industry analytics showed trading volumes in prediction markets rose to roughly $25 billion in March, with retail traders increasing activity and interest in sports-related markets. State governors have pushed for bans on some prediction platforms, and the Commodity Futures Trading Commission has been involved in disputes over regulatory authority. A group of Democratic lawmakers asked the CFTC to address what they described as an erosion of integrity and to curb insider trading. New York has filed suit against two other prediction-market operators, alleging violations of state gambling laws.

Polymarket and Chainalysis said the new detection model and training will be used to make enforcement more efficient and to support investigations when suspected rule-breaking occurs. The companies said they expect the tools to improve transparency for users and regulators and to help platforms identify and address illicit activity more quickly.