Polymarket is moving to harden its defences after a prediction-market scandal that drew scrutiny from regulators and lawmakers, saying it will expand surveillance and compliance work with blockchain intelligence firm Chainalysis. The company’s response follows allegations that a U.S. soldier used classified information tied to the planned capture of Venezuelan president Nicolás Maduro to place bets worth more than $400,000 on the platform. According to the U.S. Department of Justice, the case centres on Gannon Ken Van Dyke, who has been indicted on charges including theft of nonpublic government information, commodities fraud and wire fraud.

In announcing the partnership, Polymarket said it wants to create a more transparent and dependable trading environment, while Chainalysis said the collaboration will help strengthen on-chain market oversight. The companies plan to build new monitoring and detection tools, improve security and provide training and investigative support for Polymarket staff. At the centre of the effort is a detection model based on Chainalysis data products, designed to flag activity that may be linked to insider information.

Shayne Coplan, Polymarket’s founder and chief executive, said the tie-up would combine transparency with a stronger enforcement layer, according to comments cited by Coinfea. Jonathan Levin, Chainalysis’s co-founder and chief executive, said the deal could help on-chain markets become more trusted tools for understanding fast-moving global events. The move comes as prediction markets face growing pressure over manipulation and insider advantages, with the Van Dyke case widely described as the first criminal insider-trading prosecution involving a prediction platform in the United States.

The crackdown also lands at a politically sensitive moment for the sector. The U.S. Senate recently voted unanimously to bar senators and staff from trading on prediction markets, a step Polymarket backed as consistent with its own anti-insider stance. Yet the market itself continues to expand: a Bitget-Polymarket report said monthly trading volume reached $25.7 billion in March, while Dune Analytics put the figure at more than $23.7 billion. Retail users, the reports suggested, are driving much of the activity, even as Polymarket and rivals such as Kalshi face pushback from state officials seeking restrictions.

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Source: Noah Wire Services