Polymarket linked to Solidus Labs HALO surveillance amid market integrity scrutiny

Polymarket is expanding its partnership with Solidus Labs to deploy the firm’s HALO trade surveillance system, a move aimed at detecting market manipulation and insider trading on the prediction market platform.

The backstory makes this interesting

Solidus Labs isn’t a stranger to Polymarket’s inner workings. On April 29, 2026, the surveillance firm published a report titled “Polymarket Under the Polygraph” that identified patterns of wash trading and extreme profit concentration: under 1% of wallets in key political markets captured roughly 50% of all profits between December 2025 and February 2026.

A surveillance arms race in prediction markets

Polymarket isn’t the only prediction market platform investing heavily in surveillance infrastructure. Its main competitor, Kalshi, announced a partnership with Solidus Labs back in February 2026 to deploy HALO across its own platform. Solidus has also deployed HALO at traditional crypto firms including B2C2 and Webull during 2026, using the system for both trade surveillance and anti-money laundering purposes.

Polymarket has been building out its integrity toolkit from multiple angles. Around March 10, 2026, the platform partnered with Palantir and TWG AI to deploy the Vergence AI engine specifically for surveillance in its sports markets.

Why this matters now

The regulatory environment in 2026 has intensified, with prediction markets under comprehensive scrutiny due to their rapid growth and the potential for fraudulent activity. These platforms allow users to bet on real-world outcomes, from elections to economic data releases, and the potential for participants with privileged information to profit unfairly is a documented concern.

Both major prediction market platforms are now using the same surveillance provider, which means Solidus Labs effectively has visibility into trading patterns across the two largest venues in the space. For traders and participants on Polymarket, the practical implications are straightforward: wash trading and other manipulative strategies will become harder to execute without detection, and accounts flagged by HALO’s pattern recognition could face enforcement action ranging from trading restrictions to outright bans.

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