Polymarket is reportedly investigating its main rival Kalshi over alleged corporate espionage and idea copying, according to reporting by The New York Post.
According to a report, Polymarket has amassed an internal dossier (known internally as “Copycat”) of roughly a dozen suspected instances of competitive overlap or proprietary information being disseminated inappropriately.
In the month of February, Kalshi hosted a free product event in New York, right before a similar Polymarket event that had been in the works for months. One individual that spoke to The New York Post expressed that it appeared that the timing of Kalshi’s event was designed to sabotage Polymarket.
Another instance occurred as Polymarket prepared to announce perpetual futures trading in April, but news of a similar product from Kalshi was released just prior to Polymarket’s official announcement.
As a result of these events, Polymarket’s security team is investigating whether there is an insider leaking sensitive information to competitors, and is reportedly looking into potential internal weaknesses in how they handle product and marketing plans.
In the spring, Polymarket reportedly darkened the windows of their SoHo office in Manhattan to alleviate concerns about employees at Polymarket being visible from the offices of Paradigm located across the street.
Both Kalshi and Paradigm have denied the allegations made in The New York Post.