U.S. federal prosecutors are investigating whether some of the betting activity in a prediction market violates insider trading laws

BlockBeats News, March 31st, according to CNN citing multiple sources, federal prosecutors in Manhattan, USA are investigating whether some of the high-yield betting on the prediction market constitutes insider trading and other violations of the law.

According to sources, the head of the Securities and Commodities Fraud Section of the US Attorney's Office for the Southern District of New York has recently met with representatives from Polymarket to discuss how existing laws could apply to potential misconduct in this rapidly evolving industry.

The US Department of Justice will focus on those eye-catching high-yield bets, marking an escalation in regulatory efforts in the industry. Over the past year, the prediction market industry has expanded rapidly under relatively limited federal oversight.