Polymarket Opens Audit of Copy-Trading Apps Over Insider-Trading Risks

Overview

• Polymarket, which launched the internal audit Tuesday, is reviewing third-party tools that let users mirror top traders on its prediction markets.
• These apps track high-performing accounts, flag large or well-timed bets, and allow subscribers to copy those positions through bots or alerts.
• Some developer-backed startups published lists of wallets they suspected of using nonpublic information, triggering a closer check of those practices.
• Polymarket introduced clearer insider-trading enforcement rules last month and is now assessing whether partners built on its platform follow them.
• Developer integrations have added hundreds of millions of dollars in trading volume, and the review comes as regulators pay closer attention to how prediction markets handle timing and private information.