Polymarket reviews election bets that yielded $100,000 in profits

Polymarket is currently investigating a series of trades placed on the recent Israeli election. According to a Bloomberg News report published on Thursday, the prediction market operator is reviewing dozens of newly created wallets that bet on Prime Minister Benjamin Netanyahu keeping his job and his Likud party securing the most seats.

The activity began shortly before polling stations closed on Tuesday. Hundreds of fresh accounts placed these specific bets. When exit polls later indicated that Likud won more seats than initial reports suggested, the trades quickly turned profitable. Some of these accounts have already withdrawn over $100,000. Bloomberg noted that many other wallets hold substantial unrealized gains.

This review comes as prediction markets face increased scrutiny over potential insider trading. Platforms like Polymarket and Kalshi report a surge in suspicious activity alongside rising trading volumes. In May, Reuters reported that Polymarket saw a marked increase in trades flagged as suspicious throughout the year.

Data analysis firms Polysights and Bubblemaps have also identified the recent betting patterns as suspicious and are conducting their own investigations. Polymarket's internal team told Bloomberg it is examining the specific wallets involved. However, Bloomberg cautioned that the findings are not yet conclusive. It remains difficult to distinguish between potential insider knowledge, original research, and lucky guesses in these markets.

Representatives for Polymarket and Polysights did not immediately respond to requests for comment. Bubblemaps stated that the analysis it shared with Bloomberg was recent and provided no further updates.