Polymarket is investigating dozens of suspicious trades related to the midterm elections, with at least two cases referred to the CFTC

According to NPR, the prediction market platform Polymarket has launched an investigation into dozens of bets related to the U.S. midterm elections on November 3, focusing on potential insider trading and market manipulation. Sources say that at least two cases have been submitted to the U.S. Commodity Futures Trading Commission (CFTC).

Shana Bautista, Polymarket's Global Intelligence and Investigations Director, stated that the company has formed a 16-person team and deployed a new election trading monitoring system that generates hundreds of risk alerts daily. The monitoring scope includes U.S. compliant platforms that require identity verification, as well as international platforms that allow anonymous cryptocurrency trading.

The system integrates analysis of social media, data from the U.S. Federal Election Commission (FEC), cryptocurrency trading records, information from banking partners, and statistical models to identify abnormal accounts and trading patterns.