Prediction market platform Polymarket is working with blockchain data company Chainalysis to build a surveillance system to monitor insider trading, fraud and market manipulation.

According to a recent report by The Block, Polymarket plans to use Chainalysis investigative tools to generate blockchain-verified evidence to submit to law enforcement agencies and regulators.

Insider trading and all forms of fraud and market manipulation are not tolerated on Polymarket, and anyone attempting them will have their identity confirmed, Polymarket said.

The move comes as Polymarket seeks to raise $400 million at a $15 billion valuation. It is also pursuing re-entry to the U.S. market with approval from the U.S. Commodity Futures Trading Commission (CFTC).

Polymarket reached a settlement with the CFTC in 2022 on allegations it offered illegal options contracts, on condition it paid a fine. It later acquired QCEX, a CFTC-regulated derivatives exchange, and launched a U.S. version of its platform last year.

Shayne Coplan (쉐인 코플란), Polymarket's founder and CEO, said, "Polymarket was built on-chain for transparency." He said a partnership with Chainalysis would add monitoring and enforcement infrastructure to that transparency and "continue to grow as the most trusted information platform in the market."