Woofun AI data shows that approximately $200 million in trades on Polymarket were flagged as potential insider trading between January and June this year. Geopolitical and war-related markets drove a significant increase in abnormal trading volume. Analysis of roughly 34,000 instances identified by Polysights reveals characteristics such as newly created accounts, low-probability entries, and high trading concentration, though rule violations cannot be confirmed solely on these metrics.

Profits from these activities are highly concentrated, with the top 1% of profit-generating wallets earning more than half of the total gains. Fifty-seven percent of related wallets were created less than 24 hours before trading. Some traders employed multiple associated wallets and order splitting to reduce detection risk; for instance, 38 addresses achieved a 98% win rate across 90 Iran and Venezuela-related markets, generating $1.6 million in profits withdrawn via a single Coinbase deposit address. Polymarket has referred nearly 100 wallets to law enforcement, while Kalshi has tightened identity checks and restricted participation by individuals who may influence outcomes.