Polymarket has hired blockchain analytics firm Chainalysis to police its platform, days after a U.S. soldier pleaded not guilty to making $400,000 on bets tied to classified intelligence on the capture of former Venezuelan leader Nicolás Maduro.

The crypto-based exchange said the deal is a “first-of-its-kind on-chain solution” to enforce its market integrity rules, and includes an anomaly detection model designed to flag insider trading patterns.

What The Deal Covers

The agreement spans three Chainalysis product lines: investigative tools to produce blockchain-verified evidence for law enforcement, on-chain security capabilities, and dedicated professional services embedded inside Polymarket’s team.

“On Polymarket all trades and all settlements are recorded on a blockchain, a level of transparency that traditional markets simply cannot match,” Chainalysis Co-Founder and CEO Jonathan Levin said.

The deal follows a similar agreement with Palantir Technologies (NASDAQ:PLTR) in March to monitor sports-focused bets. Palantir’s fraud-detection reputation anchors multibillion-dollar government contracts.

Insider Cases Stack Up

The Maduro soldier is the latest in a string of awkward headlines. Six suspected insider accounts banked $1.2 million on the exact timing of U.S. strikes on Iran, prompting Sen. Chris Murphy (D-Conn.) to call the activity “insane.”

Three Polymarket accounts later pocketed over $600,000 betting on the precise hour of an Iran ceasefire, prompting the White House to warn its own staff against mirroring such trades.

Israeli authorities in February charged two suspects with using classified information to place wagers.

French officials are also investigating suspected tampering with airport weather sensors tied to heavy betting on prediction markets.

Polymarket’s Glass House

Every transaction on Polymarket’s offshore exchange is logged on a public blockchain, making trades traceable but also visible to anyone hunting an edge.

The platform doesn’t conduct identity checks, letting savvy users trade anonymously.

“Polymarket was built on-chain because transparency matters,” Founder and CEO Shayne Coplan said in a statement.

The new deal “pairs that transparency with the monitoring and enforcement infrastructure to back it up.”

The framing marks a shift in tone for Coplan, who has previously suggested that trading on private information could be socially useful by surfacing information to the public more quickly.

“There’s a lot of noise because, quite frankly, our platform is public and so when you build in a glass house, everyone can see what’s inside,” Polymarket Chief Legal Officer Neal Kumar told Bloomberg.

The Chainalysis deal follows a rule update last month prohibiting trades based on stolen confidential information and illegal tips, as well as wagers by people in a position to influence an event’s outcome.

Polymarket’s U.S. venue, which doesn’t use blockchain technology, remains in early testing.

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