House lawmakers launch insider trading probe into Kalshi and Polymarket
The U.S. House Oversight Committee, led by Rep. James Comer, launched an investigation into prediction market platforms Kalshi and Polymarket over alleged insider trading, requesting internal documents from both companies. The probe follows suspicious betting activity tied to events like the Iran war and the capture of Venezuelan leader Nicolás Maduro, including a $2.4 million profit from nine Polymarket accounts and a $409,000 bet by a U.S. special forces soldier charged with misusing confidential government information.
The House Oversight Committee announced on Friday it is opening an investigation into Kalshi and Polymarket, two prediction market platforms, over concerns of insider trading. Chairman Rep. James Comer sent letters to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan, demanding internal documents to assess how the companies prevent insider trading and verify user identities. Comer specifically asked for details on trading activity related to the Iran war and the Trump administration’s capture of former Venezuelan leader Nicolás Maduro. According to a *60 Minutes* report, nine Polymarket accounts made $2.4 million by accurately predicting key moments in the Iran conflict. In April, a U.S. special forces soldier, Gannon Ken Van Dyke, was charged with using confidential government information to bet on Maduro’s removal, profiting over $409,000. Van Dyke faces multiple charges, including fraud and theft of nonpublic government information, and has pleaded not guilty. Both platforms have faced scrutiny after tightening rules to curb insider trading. Kalshi fined and suspended three congressional candidates for betting on their own elections and now bans members of Congress from creating accounts. Polymarket implemented a rule in March prohibiting traders with authority or influence over an event from betting on its outcome. In statements to CBS News, Polymarket and Kalshi emphasized their market integrity frameworks and safeguards against insider trading. The investigation by the House Oversight Committee aims to determine whether the platforms are adequately addressing these concerns.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.