The Chairman of the Oversight and Government Reform Committee of the US House of Representatives sent a letter to the CEOs of Kalshi and Polymarket questioning the companies’ response to insider trading incidents on the platform.
In Friday’s X-Post, committee chair James Comer confirmed reports that he had sent letters to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour asking for internal records on how the companies were handling insider trading. The Kentucky lawmaker said there were concerns in Congress over elected officials using “fundamental insider knowledge” to profit from government actions.
“More than 80 suspicious trades were made at the time before Iran’s military operations,” Comer said. “Politicians and government officials with inside knowledge are making bets and profiting. This insider trading must stop.”
Source: James Comer
The “suspiciously timed trades” Comer was referring to included a May 13 New York Times report detailing events involving prediction market users betting on Israeli military actions against Iran, U.S. President Donald Trump announcing a ceasefire in the country’s war with Iran and event contracts related to congressional elections.
Polymarket said in March it had updated its approach to potential insider trading on the platform, while Kalshi announced in April that it had banned three US politicians for betting on their own race.
Connected: Polymarket team says user funds are safe as exploit losses exceed $600,000
Cointelegraph contacted Polymarket and Kalshi for comment on House inquiries, but did not receive an immediate response from either company.
US soldier who allegedly profited from Venezuela still at stake in court
In April, the U.S. Justice Department announced criminal indictments against Master Sergeant Gannon Ken Van Dyke, a soldier who was involved in the military operation that led to the capture of Venezuelan President Nicolas Maduro. Prosecutors alleged that Van Dyke used event contracts on Polymarket related to Maduro’s capture to make profits of more than $400,000 by using classified information.
Van Dyke pleaded not guilty to the charges, which included commodities fraud and unlawful use of confidential government information for personal gain. He was released on $250,000 bail and restricted to traveling between the North Carolina, California, and New York areas.
magazine: ETH rises, Tom Lee buys, XRP ‘explodes’: Market moves
