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PredictIt platform Polymarket was recently exposed in an outrageous insider trading case—three mysterious wallets acted at critical moments, betting early on certain political events in a country, and earning a staggering $630,000 in just a few hours.
According to data from the blockchain tracking platform Lookonchain, these three wallets are all "new accounts," and they all do only one thing: bet on events related to Venezuela and its leaders. Even more outrageous is that they only struck a few hours before the target events occurred. This method of operation looks suspicious—who would coincidentally create accounts, deposit funds, and then place bets just before big news breaks?
Specific data has been revealed:
Wallet 0x31a5 spent $34,000 and made $409,900 in profit
Wallet 0xa72D bet $5,800, netting $75,000
Wallet SBet365 invested $25,000 and took away $145,600
"These three wallets are only interested in this type of event, with no other betting records. It's obvious they are operating with insider information," Lookonchain stated.
Once this was exposed, it caused a stir. Some lamented that "cryptocurrency has doubled human greed," while others questioned where the money came from—could it be insider leaks? This raises a deeper question: How reliable are the anti-cheating mechanisms of prediction markets? In a blockchain environment with such high transparency, why are these kinds of schemes still possible?