POLYMARKET AUDITS STARTUPS PROFITING OFF INSIDER TRADES

Polymarket created a startup accelerator program last year to boost platforms sending trades to its market. Companies in the program, including Kreo and Polycool, quickly began offering customers access to suspected insider trading accounts, effectively monetizing advance knowledge of company developments. Kreo markets itself as helping users "find insiders before the rest," while Polycool explicitly advertises as a "guide to Polymarket insider trading." These services allowed retail users to copy trades from accounts with apparent advance information about earnings, regulatory decisions, and other material events. The audit represents a significant reversal for Polymarket, which had positioned the startup program as a growth initiative. Regulatory scrutiny over prediction markets has intensified, with lawmakers questioning whether platforms adequately police illegal trading activity. Insider trading on prediction markets remains a gray area legally, though the SEC has indicated enforcement interest in the space. Polymarket has not disclosed audit findings or whether it will remove startups from its program.