Source: Benzinga
“Manhattan’s top fraud prosecutors met with Polymarket to discuss whether lucrative bets on the prediction market platform have violated insider trading and other federal laws. The meeting follows a warning from Jay Clayton, the U.S. Attorney for the Southern District and former SEC chairman, who told a securities law conference that criminal cases involving prediction market activity were coming. … One newly created Polymarket account turned $32,000 into over $400,000 in less than 24 hours after the capture of Venezuelan leader Nicolás Maduro. In another instance, a trader netted nearly $1 million from making remarkably accurate Iran war bets on the platform. Polymarket and Kalshi are scrambling to get ahead of the scrutiny. Polymarket issued new rules last week banning trades based on confidential information. Kalshi, which has long banned insider trading, went further by blocking politicians and athletes from trading in their own markets and said it has referred over a dozen cases to law enforcement in the past year.” (03/30/26)