CNN Report Raises Alarm Over Possible Military Insiders Winning Millions on Polymarket War Bets

A new report is raising national security concerns after researchers identified more than 150 Polymarket accounts showing signs of potential insider trading on military-related prediction markets, with some traders appearing to have access to sensitive information.

CNN senior reporter Marshall Cohen joined anchor Wolf Blitzer on Friday to discuss the findings, which focused on accounts placing bets on military events and reportedly winning at an extraordinarily high rate.

Blitzer said the report was raising “serious alarm bells” over the possibility that U.S. military insiders were using privileged information to make bets while potentially exposing sensitive national security information publicly.

Cohen explained that war markets are illegal in the United States and that the trades examined in the report occurred on Polymarket’s international platform.
That platform operates using blockchain technology, meaning trades are publicly visible and trackable, although the identities of the individuals behind the accounts are not revealed.

Cohen said the nonpartisan Anti-Corruption Data Collective analyzed that publicly available information and identified more than 150 accounts displaying signs of possible insider trading on war-related markets, including markets involving Iran.

According to the findings, many of the accounts placed large bets on unlikely outcomes and achieved a staggering 97% win rate. Cohen said the accounts collectively made more than $8 million in profits.

Cohen stressed that Polymarket itself has not been accused of wrongdoing.

A senior Polymarket official told CNN that the company had already referred dozens of the accounts in question to the Justice Department and that criminal investigations were underway. CNN also reached out to the DOJ for comment.

Polymarket says it is investing heavily in surveillance technology designed to combat insider trading.

Company founder and CEO Shayne Coplan addressed the issue during an event with federal regulators in Washington, D.C., saying Polymarket has a former FBI employee working full time for the company who developed proprietary blockchain surveillance software.

Coplan also referenced the company’s work with Palantir and Chainalysis while emphasizing the seriousness of its surveillance efforts and saying Polymarket could continue investing more resources in them.

Cohen said the findings underscore broader concerns among policymakers about the rapidly developing prediction-market industry.

A bipartisan group of 44 state attorneys general is pushing for increased regulation, according to Cohen.

He added that growing numbers of both Democrats and Republicans on Capitol Hill are also seeking reforms.

The report puts another spotlight on prediction markets as policymakers consider how the platforms should be regulated, particularly when bets involve military actions and other events that could potentially be influenced by information unavailable to the general public.