Polymarket stands ready to fight misconduct as US midterms loom, intel chief says

Washington, Aug 31 (Reuters) - Polymarket, a prediction market company, is ready to regulate trading on its platform as U.S. midterm elections draw near, according to its new global head of investigations and intelligence, Shana Bautista. Bautista, a former Coinbase analyst and FBI investigator, stated that the company is confident in its resources to identify any suspicious activity during the midterms.

Polymarket faces criticism from U.S. lawmakers who worry that these fast-growing prediction markets could facilitate insider trading and jeopardize national security and election integrity. The company's international platform, which operates on a blockchain and displays trades publicly, has been a point of contention for critics.

However, Bautista highlighted that the blockchain provides valuable insights into trader activity. Polymarket has been enhancing its controls and plans to increase transparency in its market integrity efforts. The company has already referred over a hundred cases to law enforcement, including one involving a U.S. soldier who allegedly used classified information to bet on Venezuela's Nicolas Maduro.

Bautista expressed confidence that the company's systems are effective in blocking most U.S. users, but admitted that consistently evading the safeguards may be challenging at scale.