Polymarket has investigated dozens of bets related to the U.S. midterm elections over suspected insider trading and market manipulation.
According to NPR, at least two cases were referred to the Commodity Futures Trading Commission (CFTC). The investigations began ahead of the November 3 elections, when Americans will elect members of Congress.
Shana Bautista, Polymarket’s Head of Global Intelligence and Investigations, explained that her team of 16 specialists uses a new surveillance system that generates hundreds of alerts daily to detect suspicious trading activity.
The system analyzes data from social media, campaign finance records, cryptocurrency companies, banking institutions, and statistical models. It monitors both Polymarket’s U.S. platform and its international market, where users can trade with cryptocurrencies without publicly verifying their identities.
Bautista warned that using confidential information to place bets is prohibited under the platform’s terms of service and may violate the law. She also noted that blockchain transactions can help identify those potentially responsible.
Investigations into election betting increased after political campaign staffers admitted making profits using poll results that had not yet been released publicly.
Polymarket had also announced a partnership with Chainalysis in April to improve the detection of suspicious trading activity through blockchain analytics tools.
Its main competitor, Kalshi, also reported opening more than 150 investigations during 2026 and referring more than 20 cases to authorities.
Source: https://www.npr.org/2026/10/27/nx-s1-6012304/polymarket-election-betting-surveillance
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