The U.S. House Oversight Committee has expanded its investigation into insider trading on prediction markets to platforms including Hyperliquid.

BlockBeats news, September 29 - According to CNBC, James Comer, Chairman of the U.S. House Oversight Committee and Republican Representative from Kentucky, is expanding an investigation into insider trading on prediction markets and has requested that three online platforms explain their measures to combat such activities.

In letters sent on Tuesday, Comer requested documents and information from the CEOs of Hyperliquid Labs, Crypto.com, and Aristotle Exchange Inc., which owns the PredictIt platform, asking them to explain their identity verification procedures and how they identify and prevent insider trading on their platforms.

In a statement, Comer said: "As online prediction platforms continue to grow and become increasingly mainstream, some bad actors are using non-public information to place bets and earn thousands of dollars. The House Oversight Committee is investigating whether these platforms are fulfilling their legal obligations and taking sufficient measures to identify and stop insider trading before it occurs."