CNBC: US House Oversight Committee Launches Investigation into Insider Trading at Kalshi and Polymarket

Foresight News reports, according to CNBC, that on May 22, US House Oversight and Government Reform Committee Chairman James Comer announced that the committee had sent letters to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour regarding insider trading issues. The letters request that both companies submit relevant documents explaining their measures for identity verification, enforcement of geographic restrictions, and monitoring of abnormal trading activities. The deadline for submission is June 5.

In his letter to Polymarket, Comer pointed out that the crypto infrastructure of prediction markets and user anonymity may provide structural loopholes exploitable by insiders with national security clearance. Several suspected insider trading incidents have previously come to light: a US soldier was arrested for allegedly using inside information to bet on the ousting of Venezuela’s Maduro on Polymarket, profiting about $400,000; a New York Times investigation also showed that more than 80 Polymarket users established related positions hours before the US and Israel carried out strikes on Iran. On Kalshi, several congressional candidates were banned from the platform in April for betting on their own election outcomes.