Polymarket Investigates Possible Insider Trading Ahead of Israeli Election

Polymarket said it is investigating allegations that insider trading may have affected its prediction market for the Israeli election, which took place on Oct. 27. Analytics firms Polysights and Bubblemaps identified hundreds of newly created blockchain accounts that deposited funds and executed trades shortly before polls closed in Jerusalem.

The accounts placed large wagers on Prime Minister Benjamin Netanyahu and his coalition outperforming pre-election polls, with some trades becoming profitable after exit-poll results were released. One account reportedly risked $14,000 just 12 minutes before voting ended and later withdrew $42,000 as market prices adjusted.

Polysights estimated that more than $700,000 in potential payouts were linked to “fresh wallets with no trading history.” Polymarket’s platform has recorded over $81.2 million in total trades on the question of who will be Israel’s prime minister after the election.

"Both exit poll producers and election officials hold access to sensitive data that could be leveraged as insider information on prediction platforms like Polymarket," the report noted.

The investigation follows previous controversies involving Polymarket, including a U.S. Department of Justice case in April where a Special Forces sergeant was charged for using classified military information to trade on the platform, and a May case involving a Google engineer accused of profiting from confidential search data.

Polymarket has not released a public statement beyond confirming that the matter is under active review.