Polymarket Partners With Palantir and TWG AI on Market Surveillance for Insider Trading
Polymarket has announced an AI-powered surveillance platform built with Palantir and TWG AI to detect insider trading
Polymarket is building an artificial intelligence-powered surveillance system to monitor its sports prediction markets.
The platform will be developed in partnership with Palantir Technologies and TWG AI, using a tool called the Vergence AI engine. The announcement comes as prediction markets face mounting scrutiny over insider trading and market manipulation. Just this week, Polymarket was in headlines regarding possible insider trading on event contracts connected to the Super Bowl. And it certainly isn’t an isolated incident.
That news came on the heels of reports about Polymarket’s connection to insider trading, with some users making wildly accurate bets on corporate earnings, in which every single company they bet on shared the same auditor: KPMG.
The partnership signals that at least some operators in the sector are treating integrity infrastructure as a priority rather than an afterthought.
What the Surveillance Platform Will Do
According to Polymarket, the new system will implement multiple layers of monitoring across its markets. The platform will track trading activity before and after execution, analyzing how trades are submitted, settled, and completed. Anomaly detection models will flag potential manipulation, coordinated activity, insider risks, and irregular patterns in near real time.
The system will also screen trader accounts for prohibited users and analyze relationships between accounts to prevent unauthorized market participation. A dedicated operations center will allow analysts to review flagged activity, investigate potential issues, and escalate cases as needed. Automated compliance reporting will generate trade alerts and supervisory records to support regulatory enforcement.
Drew Cukor, Global Head of AI at TWG AI, said the system reflects a foundational approach to exchange integrity. “Market integrity isn’t a feature you bolt on after the fact,” he said. “It has to be engineered into the foundation of how an exchange operates.”
Polymarket CEO Shayne Coplan said the goal is to allow fans new ways to engage with sports while ensuring markets can grow responsibly on a global scale.
The Backdrop: A Series of Insider Trading Concerns
The announcement is not happening in a vacuum. Polymarket has been at the center of several high-profile insider trading controversies over the past year.
Earlier this year, a newly created account reportedly generated more than $400,000 in profits on markets tied to the political fate of Venezuelan leader Nicolás Maduro, with the trades placed shortly before reports of a U.S. operation targeting the regime became public.
Separately, multiple accounts made approximately $1.2 million in combined profits on markets tied to U.S. military strikes against Iran, with many of those trades placed hours before the strikes were publicly announced. A third case last year involved a trader who reportedly profited around $1 million on “Year in Search” markets tied to Google data, raising questions about prior access to non-public information.
Rival platform Kalshi has also faced integrity questions. Reports emerged that college students traded on inside information about celebrity attendance at Super Bowl LX, profiting from advance knowledge about markets before the information became public.
Notably, none of those cases involved sports event contracts specifically. However, insider trading scandals across the NBA and collegiate sports have demonstrated that real-time integrity monitoring is essential for any market tied to sporting outcomes.
Industry Rivals Distance Themselves From Polymarket
The broader prediction market industry has been careful to separate itself from Polymarket’s controversies. After the Maduro trade reports surfaced, the Coalition for Prediction Markets, which includes Kalshi, Coinbase, Crypto.com, Robinhood, and Underdog, took out a full-page advertisement in the Washington Post.
The coalition sought to draw a clear contrast between its member platforms and what it described as offshore platforms where the most concerning scandals have occurred.
The language was pointed. The Coalition has consistently used the terms “offshore” and “unregulated” when describing bad actors in the space, descriptions widely interpreted as targeting platforms like Polymarket. Polymarket is currently not fully operational in the United States and runs at limited capacity, though some observers note that U.S. users may still access the international platform via VPNs.
Whether Technology Can Solve the Problem
Polymarket’s AI surveillance partnership is a meaningful commitment to integrity infrastructure. Whether it can fully address the concerns that have accumulated around the platform is a separate question.
Insider trading, by its nature, is difficult to detect in advance. Surveillance systems can flag anomalous patterns after the fact and build compliance records that support enforcement actions. They are less effective at stopping a sophisticated actor with genuine advance access to non-public information from profiting before any alert is triggered.
As prediction markets continue to grow in scale and visibility, the adequacy of self-policing mechanisms will remain a point of debate for regulators, critics, and users alike.
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