TLDR Polymarket is investigating suspicious bets placed on Israel’s October 27 general election by newly created accounts. Bubblemaps found 101 accounts that received their first funding on election day before polls closed. One wallet turned a $14,000 bet placed 12 minutes before polls closed into about $42,000. Polymarket has reported the activity to law enforcement, but findings do not yet show whether traders had secret information. The platform also faced a security breach on October 29 with possible losses of up to $2.73 million.
Polymarket is investigating what it calls potentially suspicious trading tied to Israel’s general election, held on October 27. Hundreds of newly registered accounts placed winning bets on Prime Minister Benjamin Netanyahu’s Likud party shortly before voting ended.
The activity has renewed concerns about insider trading on prediction markets, where users bet on the outcome of real-world events.
The trading involved two contracts on the platform. One asked who would become Israel’s next prime minister. The other asked which party would win the most seats in parliament.
What Blockchain Data Shows
Blockchain analytics firms flagged unusual patterns before the polls had even closed. Polysights and Bubblemaps reported large deposits into new accounts, many with no prior trading history, according to The New York Times.
Bubblemaps identified 101 accounts that received their first funding on election day before polls closed. Several of those traders sold their positions at a profit after exit polls showed stronger results for Likud.
Some accounts reportedly made more than $100,000 in combined profits. One wallet placed a $14,000 bet just 12 minutes before polls closed.
After the odds shifted, that trader sold the position for about $42,000. That is roughly three times the original stake.
Polymarket said its investigative team is reviewing dozens of new wallets linked to the election