Insider Trading Exposed on Polymarket: $1.2 Million in Profits

A recent analysis of Polymarket data has shed light on a concerning trend in the world of decentralized prediction markets. The investigation by ZachXBT exposed how insider trading can lead to significant profits for those with early access to investigative findings.

The analysis identified 12 suspected insider wallets generating a combined $1.02 million in profit, with one address earning over $411,600 on the Axiom market alone. This raises questions about information asymmetry and whether regulatory frameworks are sufficient to prevent such exploitation.

Decentralized prediction markets lack enforceable insider trading rules, leaving structural abuse unaddressed. The incident mirrors front-running patterns seen in traditional securities markets, highlighting the need for greater transparency and oversight in the DeFi space.