Polymarket, the world’s largest prediction market company, has partnered with blockchain analytics firm Chainalysis to help curb insider trading activities amid its recent move to raise $400 million from investors.

 

The partnership will see Chainalysis deploy several investigative tools, including the Chainalysis Data Solutions tool, a first-of-its-kind on-chain solution designed to monitor trading activity on prediction markets while mapping insider trading patterns and enforcing market integrity rules across the Polymarket platform.

 

 

The prediction market platform will also benefit from Chainalysis’s on-chain security capabilities, which are pivotal in preventing threats, as well as a dedicated team of Chainalysis professionals who will not only help deploy Chainalysis Data Solutions but also train the Polymarket team on how to proactively use the solution to maintain transparency on the platform.

 

The solution to be deployed is also dynamic, meaning Polymarket can continually refine its detection methods to identify and curb insider trading activities, thereby maintaining transparency and protecting the platform from emerging threats.

 

By partnering with and leveraging Chainalysis's institutional expertise, Polymarket is clearly signaling its stance against all types of fraud and market manipulation and that those who attempt to engage in any such activities will be promptly identified and prosecuted.

 

"Polymarket was built on chain because transparency matters, and our platform shows what markets can look like when trades are open, traceable, and accountable by design," said Shayne Coplan, Founder and Chief Executive Officer of Polymarket.

 

"Every market deserves that standard. This partnership with Chainalysis pairs that transparency with the monitoring and enforcement infrastructure to back it up and helps us continue to build the most trusted source of truth in markets."

 

Insider Trading Concerns in Prediction Market Platforms 

Insider trading, which is the illegal practice of leveraging material non-public information (MNPI) or confidential information to gain an edge over other market participants, has long been a problem for prediction market platforms.

 

To curb insider trading, the U.S. Senate unanimously passed a measure banning its members from trading on prediction markets. Most recently, a group of congressional Democrats led by Sen. Jeff Merkley has pressed the Commodity Futures Trading Commission (CFTC), urging the regulator to address the lack of integrity caused by insider trading activities on prediction market platforms.

 

Due to this mounting pressure, Kalshi, Polymarket, and other prediction market platforms have rolled out several restrictions to address these concerns, which is also the main factor behind the Polymarket Chainalysis partnership.

 

 

Blockchain data analytics company Chainalysis announced on Tuesday at its annual Links conference in New York the introduction of its blockchain intelligence agents, designed to scale investigations and compliance for security professionals and organizations.

 

According to the company’s CEO and co-founder, Jonathan Levine, the AI agents are not a “new product” or a “bolted-on chatbot feature,” but rather an evolution of the company’s existing platform and experience, built on insights from billions of transactions screened and more than ten million investigations conducted over the past decade.

 

"Chainalysis blockchain intelligence agents put the full depth of our platform, our data, products, and institutional expertise, into the hands of anyone in your organization,” Levine wrote in a company blog post. “From seasoned investigators and compliance analysts to executives, Chainalysis agents provide insights and amplify what your team can do.”

 

 

To ensure transparency and reliability in its use, the Chainalysis team built its blockchain intelligence agents around four key principles: data quality, context and reasoning, auditable results, deterministic workflows, and human control. These principles are designed to help the agents deliver accurate and consistent insights.

 

The blockchain intelligence agents will begin rolling out over the summer, and the team expects that, over time, they will be used by professionals across a range of roles to unlock new levels of blockchain insight.

 

Chainalysis Joins the AI Agents Race

Prior to Chainalysis's integration of AI agents into its blockchain intelligence platform, several blockchain companies had already developed and launched their own AI-powered tools.

 

On March 25, blockchain intelligence firm and Chainalysis competitor TRM Labs announced the launch of its Co-Case Agent, an embedded AI investigative assistant that enables investigators to use plain-language prompts for complex on-chain tasks such as tracing funds, auditing transaction graphs, and maintaining immutable audit logs for Suspicious Activity Reports (SARs).

 

Blockchain analytics and crypto intelligence platform Nansen also launched its Nansen AI agent earlier this year. The conversational assistant supports on-chain research and agentic trading, helping users analyze wallets, identify market signals, and suggest trades.

 

These AI agent releases followed the introduction of Elliptic’s Copilot. In April 2025, the blockchain analytics and crypto compliance firm launched its AI-powered assistant to streamline compliance workflows and risk management.

 

Elliptic’s Copilot is widely regarded as one of the earlier AI assistant tools introduced by a blockchain intelligence company.