The U.S. House of Representatives Launches Insider Trading Investigation into Kalshi and Polymarket

BlockBeats News, May 22, according to CNBC, James Comer, Chairman of the House Committee on Oversight and Reform, announced an insider trading investigation into the prediction market platforms Kalshi and Polymarket. He has sent letters to the CEOs of both companies requesting documents related to identity verification, geographic restrictions, and monitoring of unusual transactions.

Comer stated that internal records of prediction market platforms are the only way to identify violators and assess whether the platform is fulfilling its legal obligations. The investigation focuses on how the platforms prevent insider trading and the identity verification process for international accounts.

Previously, a U.S. soldier was arrested for using insider information to bet on a change in the Venezuelan government, making a profit of about $400,000. The New York Times recently reported that over 80 Polymarket users engaged in suspicious trading activities, including placing bets hours before the U.S. launched attacks on Iran. In addition, Kalshi had previously suspended the accounts of three congressional candidates betting on their own election results. Comer has requested both companies to submit the relevant information by June 5.