Polymarket has accused rival prediction market Kalshi of corporate espionage, alleging the company copied product launches and may be surveilling its Manhattan offices, per a New York Post report. The allegations stem from an internal dossier Polymarket calls 'The Imitators,' which logs roughly a dozen incidents the company deems suspicious, prompting an internal investigation. Polymarket tinted its SoHo windows this spring over concerns that Paradigm, a venture firm backing Kalshi that leases offices directly across the street, could view employee screens. The accusations come as Kalshi overtook Polymarket in April 2026 with $5.42 billion in taker volume compared to Polymarket's $1.99 billion, per Dune Analytics, escalating competitive tensions in the prediction market sector.
Polymarket Cites Timing Coincidences in Grocery Promotion and Perpetual Futures Launch
Polymarket's dossier highlights specific incidents the company views as evidence of copying. Polymarket had scheduled a free grocery pop-up in New York for February 12, but Kalshi staged a similar voucher-driven promotion approximately nine days earlier, according to the Post report. "There have been a couple too many coincidences," Polymarket head of marketing Matthew Modabber told the Post. "There is bad intention in how they copy us. They're breathing down our neck."
The perpetual futures timing drew particular scrutiny. Polymarket planned to unveil its perpetual futures product on April 21, but roughly an hour before the announcement, tech outlet The Information reported Kalshi was preparing its own version. "They seemed to know we were going to announce that day," one insider told the Post. Polymarket staff have privately raised concerns about potential "moles" inside the firm, sources told the Post.
Paradigm leases offices directly across from Polymarket's SoHo headquarters with sightlines into parts of the floor and potentially employees' screens, sources told the Post. Polymarket tinted some windows this spring in response to these concerns.
Kalshi Overtakes Polymarket in April 2026 Trading Volume
Kalshi overtook Polymarket in April 2026 taker volume for the first time, recording $5.42 billion compared to Polymarket's $1.99 billion, per Dune Analytics. The two companies dominated a record $25.7 billion in combined March volume. Polymarket has operated on-chain since 2020, while Kalshi won CFTC approval in 2021 as the first federally regulated U.S. prediction exchange.
Both Companies Deny Espionage Allegations
Kalshi and Paradigm rejected the allegations. "This is sad and borderline delusional," Kalshi spokesperson Jack Such told the Post, stating Kalshi had built its perpetual futures product since 2024 and that The Information likely learned of it from an April 13 teaser on X. A Paradigm spokesperson called the surveillance concerns "laughable." No public evidence of espionage has surfaced to date, and the allegations remain unproven.
FAQ
What did Polymarket accuse Kalshi of doing?
Polymarket accused Kalshi of corporate espionage, alleging the company copied its product launches and may be surveilling its Manhattan offices. Polymarket compiled an internal dossier called 'The Imitators' logging roughly a dozen incidents it deems suspicious, per a New York Post report.
Why did Polymarket tint its office windows this spring?
Polymarket tinted its SoHo windows this spring over concerns that Paradigm, a venture firm backing Kalshi that leases offices directly across the street, could view employee screens, sources told the New York Post.
How did Kalshi's April 2026 trading volume compare to Polymarket's?
Kalshi overtook Polymarket in April 2026 with $5.42 billion in taker volume compared to Polymarket's $1.99 billion, per Dune Analytics, marking the first time Kalshi surpassed Polymarket in monthly volume.
