Rep. Comer Targets 3 Platforms in Expanded Prediction Market Probe

Congress Turns up the Heat connected Prediction Market Insider Trading

A worker allegedly pocketed much than $409,000 betting connected classified subject intelligence, portion different trader reportedly cleared $150 cardinal aft positioning up of a statesmanlike tariff announcement. Now Congress wants answers.

On Tuesday, Sept. 29, House Oversight Chairman James Comer (R-Ky.) expanded his prediction marketplace insider trading investigation, sending ceremonial accusation requests to Hyperliquid Labs, Crypto.com, and Aristotle Exchange, the relation of Predictit. All 3 person until Oct. 13 to supply records detailing lawsuit verification procedures and suspicious trading controls.

A $409,000 Military Intelligence Case Raises Questions

The property merchandise explains that the probe began successful May 2026, examining whether prediction marketplace platforms adequately forestall authorities employees, contractors, and different insiders from profiting from privileged information.

The letters mention an April 24 national indictment alleging that U.S. Army Master Sgt. Gannon Ken Van Dyke utilized classified quality concerning Operation Absolute Resolve, the subject cognition that resulted successful Venezuelan President Nicolas Maduro’s capture, to spot Polymarket wagers generating much than $409,000 successful idiosyncratic fiscal gain. The allegations person not been established arsenic findings of guilt, and the U.S. worker has pleaded not guilty.

“As online prediction platforms turn and go much mainstream, immoderate atrocious actors person exploited the platforms to marque thousands of dollars by placing bets based connected nonpublic information,” Comer said.

The House Oversight Chairman added:

“Americans merit to cognize that these platforms are taking steps to forestall insider trading.”

Hyperliquid’s $1.1 Billion Trade Draws Congressional Scrutiny

The Hyperliquid letter, addressed to co-founder Jeff Yan, introduces different eyebrow-raising transaction. Citing published research, lawmakers notation a $1.1 cardinal leveraged abbreviated presumption crossed bitcoin and ether perpetual contracts opened astir 30 hours earlier President Donald Trump’s October 2025 tariff announcement. The trader reportedly closed the presumption soon afterward, collecting much than $150 cardinal successful profit.

Congress hasn’t established that the trader possessed beforehand knowledge, but the timing has drawn scrutiny, alongside concerns astir individuality verification and suspicious enactment reporting. Lawmakers privation records covering geographic restrictions, trading surveillance, regulatory compliance, and employees holding authorities information clearances.

Crypto.com and Predictit Face Separate Demands

Alongside this, the Crypto.com letter, addressed to laminitis and CEO Kris Marszalek, examines individuality verification differences betwixt its planetary speech and Crypto.com Derivatives North America (CDNA). Congress besides wants records concerning employees trading up of firm announcements and authorities officials betting connected cryptocurrency regulatory outcomes.

Predictit co-founder and CEO John Aristotle Phillips received a abstracted request examining political-event trading, suspicious enactment reporting, and the removal of the platform’s per-contract trader bounds nether CFTC Letter No. 25-20. Lawmakers privation to cognize whether eliminating that regularisation affected liquidity, trading scale, oregon insider trading detection. Predictit indispensable besides supply a staff-level briefing.

Nearly 1,000 Documents Already Collected

The probe has already yielded astir 1,000 documents and 5 briefings from Polymarket and Kalshi representatives, according to the committee’s Sept. 29 announcement.

The latest requests screen records dating backmost to Jan. 1, 2024, arsenic lawmakers mull whether further legislature enactment is warranted. For platforms built astir trading connected aboriginal events, the enquiry presents a thorny question: When idiosyncratic knows tomorrow’s authorities determination today, who tin place the idiosyncratic down the winning bet?