Polymarket reports nearly 100 suspicious wallets to police

The well-known prediction market Polymarket is referring nearly 100 suspicious wallets to law enforcement agencies. At the same time, the platform is tightening its oversight of potential insider trading. An analysis by Bloomberg based on Polysights data shows that approximately $200 million in transactions on the platform during the first half of 2026 exhibit characteristics suggestive of possible insider activity.

Insider Trading Around Geopolitical Markets

The majority of the suspicious transactions are linked to geopolitical markets, particularly those concerning Iran and Venezuela. Traders apparently took positions that, in hindsight, aligned remarkably well with subsequent developments in those regions. Bloomberg analysed the data via Polysights and concluded that this pattern is not coincidental.

Moreover, Polymarket has long been in the spotlight of US regulators. A complicating factor is that the platform allows many users without identity verification. Several traders publicly admit to circumventing location restrictions via a VPN, complicating enforcement.

Polymarket Says It Is Already Taking Internal Action

A spokesperson for Polymarket stated that the company is actively working to detect unauthorised access by blocked users and other violations of the terms of service. The platform does not comment on ongoing investigations or specific cases.

However, the spokesperson stated that the internal process has so far resulted in nearly 100 wallet referrals to law enforcement agencies. That is a strikingly high number and demonstrates that Polymarket takes regulatory pressure seriously. Prediction markets are increasingly drawing the attention of regulators worldwide, especially now that competitors such as Hyperliquid with its own outcome markets are entering the market. More details on the Bloomberg investigation can be read via Bloomberg.