The key facts

  • Polymarket is reviewing suspicious bets on the Israeli election, the WSJ reports, citing a source familiar with the matter
  • The bets were placed shortly before voting ended and anticipated that Netanyahu would outperform his rival
  • The platform has already faced accusations of insider trading and other types of fraud

Suspicious bets on the Israeli election

The prediction platform Polymarket is examining suspicious bets placed on this week's election in Israel, The Wall Street Journal reported on Friday, citing a person familiar with the investigation. According to the outlet, the trades generated significant profits and appeared unusually well timed: the bets were placed shortly before voting closed and anticipated that Israeli Prime Minister Benjamin Netanyahu would outperform his rival.

Growing pressure on the platform

The investigation comes amid growing scrutiny of prediction market platforms, which are suspected of insider trading. According to the WSJ, US and Israeli authorities have already charged service members who, per the investigation, used confidential information to profit from bets placed through Polymarket. The outlet reports that federal investigators are preparing charges against a KPMG employee who allegedly traded on insider information about companies audited by the firm. Beyond insider schemes, the platform has also faced other types of fraud: users reportedly linked stolen debit cards to their accounts to fund bets.