Polymarket Insider Trading Row: P2P.me Bet on Its $6M Raise

Prediction market platform P2P.me disclosed that it opened Polymarket positions about whether its fundraising would hit $6M. The trades were placed about 10 days before the raise went live, using funds from a foundation account labeled “P2P Team.” This Polymarket insider trading row centers on disclosure timing and potential conflict-of-interest concerns, though P2P.me argues the result was genuinely uncertain at the time. P2P.me said it had only an oral $3M commitment from Multicoin Capital, with no signed term sheets and no guaranteed allocations. The raise ultimately closed at $5.2M (below target). Even so, the team still made money on the Polymarket bet: $20,500 returned $35,212 (net ~$14,700). The company says all proceeds will go to its MetaDAO treasury and that it’s liquidating open positions. After the on-chain activity was criticized, P2P.me apologized and called the lack of upfront disclosure “a mistake we own.” The episode comes as U.S. lawmakers push tighter rules, including the PREDICT Act aimed at banning lawmakers and senior officials from trading on prediction markets, alongside broader political insider-trading legislation. Polymarket also announced a partnership with Palantir to build manipulation-detection surveillance.