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Manhattan prosecutors probe potential insider trading on prediction markets: CNN
Federal prosecutors in Manhattan probe well-timed trades on prediction markets amid rapid industry growth and calls for clearer regulations from lawmakers and regulators.
- Federal prosecutors in Manhattan are investigating whether lucrative bets placed on prediction markets violate insider trading and anti-fraud laws, marking an escalation by the Justice Department into the fast-growing industry.
- Fresh scrutiny follows well-timed wagers on high-profile events, including the capture of Venezuelan leader Nicolás Maduro and war outcomes in Iran, raising concerns about potential access to nonpublic information.
- U.S. Attorney for the Southern District of New York Jay Clayton warned that prediction markets do not "insulate you from fraud," though criminal defense lawyer Aitan Goelman noted prosecuting such cases remains legally untested.
- Platforms like Polymarket and Kalshi are proactively updating rules and investigating suspicious activity, with Kalshi having referred over a dozen cases to law enforcement in the past year.
- State-Level enforcement is intensifying: California Democratic Governor Gavin Newsom recently banned state officials from using insider knowledge on prediction markets, while Arizona filed criminal charges against Kalshi for allegedly operating an illegal gambling business.
23 Articles
23 Articles
By Kara Scannell, CNN. Federal prosecutors in Manhattan are investigating whether certain lucrative bets placed on prediction markets have violated insider trading and other laws, multiple sources told CNN. The heads of the securities and commodities fraud unit of the U.S. Attorney's Office for the Southern District of New York recently met with representatives of Polymarket, one of the leading prediction market platforms, to discuss how existin…
Federal prosecutors probe insider trading among astounding prediction market wins
After a series of suspiciously timed, highly lucrative bets, federal prosecutors have begun exploring whether insider trading laws are being broken via prediction markets. A handful of users have been making big money off the apps Polymarket and Kashi, and a growing number of critics warn that they must have received insider information pertaining to TV show finales, elections and President Donald Trump’s decisions regarding the war on Iran.Pred…
White House insiders put on notice as federal prosecutors look into insider trading
Federal prosecutors were determining if prediction market bets have violated insider trading laws, according to a CNN report Monday. The heads of the securities and commodities fraud unit in the U.S. attorney's office for the Southern District of New York reportedly met with Polymarket representatives to learn more about how existing laws could be interpreted as part of an investigation into possible misconduct. Polymarket is one of the leading …
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