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Kalshi and Polymarket are under investigation by the U.S. House Committee on Oversight and Reform, led by Chairman James Comer, on suspicion of insider trading.
Svmuu News: James Comer, Chairman of the U.S. House Committee on Oversight and Reform, has launched an investigation into the prediction market platforms Kalshi and Polymarket. He has sent letters to the CEOs of both companies requesting internal documents regarding measures to prevent insider trading, identity verification, geographic restrictions, and monitoring of suspicious transactions. Comer stated that internal platform records are the only way to identify accounts suspected of profiting from national security secrets, including those belonging to military personnel and individuals holding security clearances. The investigation focuses on transactions related to election results and U.S. military operations against Iran and Venezuela. Previously, a U.S. soldier was arrested for profiting approximately $400,000 on Polymarket by exploiting intelligence regarding a regime change in Venezuela, and more than 80 other users were reported to have placed trades hours before U.S.-Israeli airstrikes on Iran. (CNBC)
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