Earlier quoted context omitted.
Polymarket's founder is Shayne Coplan, 27-year old "youngest self-made billionaire" (why do all billionaires seem devoid of ethics?) A sane system would just throw him in jail until his illegal betting market implements KYC.
When power is concentrated to the government, the corruption is concentrated with it. Incarceration and the end of privacy don't restore the victims. A consumer protection bureau could bring a civil suit against Polymarket to pay the journalist.
This is a hackneyed neoliberal fundamentalist myth.
If power is concentrated anywhere, it should only ever be in government - where it's answerable to the public electorally.
Governments become corrupt when they are weak, and turn to serving private interests rather than the public they represent.
Corruption in general is far more prolific and fruitful where government is weak (the neoliberal ideal) - which is one of the reasons corrupt private actors look to weaken government - for instance by undermining public trust in it or lobbying for its parasitization by private entities. Or by stuffing their acolytes minds with foolish neoliberal fundamentalist myths.