The US Government Launched 3 Previously Unreported Investigations of Polymarket Trades
The agency that oversees prediction markets has investigated Polymarket trades on Biden pardons and the Iran war—and even more potential insider trading at Google, documents obtained by WIRED show.
The Commodity Futures Trading Commission has launched three undisclosed investigations into Polymarket trades, according to voting records from the federal agency that oversees prediction markets. In May, CFTC chairman Michael Selig approved an order for a private investigation into potential insider trading on Polymarket event contracts related to pardons issued by former President Joe Biden.
Selig later approved another investigation order focused on "Iran event contracts" on Polymarket, and a third investigation into suspected insider trading on Google-themed Polymarket event contracts. The investigations came in the wake of reports alleging suspicious activity on Polymarket, including a trader who made over $300,000 on Biden pardon-related markets and a network of accounts that earned $2.4 million on Iran-related trades.
While the CFTC has declined to comment on the specifics of the investigations, Polymarket's deputy chief legal officer stated that the agency regularly refers matters to law enforcement and supports ongoing investigations. The CFTC is also reportedly investigating Polymarket itself, and has previously investigated Kalshi, its archrival.
Two arrests have been made in connection with Polymarket insider trading investigations, with the CFTC filing civil charges and the Department of Justice filing criminal fraud charges.
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