House Panel to Probe Insider Trading on Prediction Markets (1)

The House Oversight Committee is investigating how customers of Kalshi and Polymarket could be using non-public information to engage in insider trading, escalating concerns about prediction markets after some suspiciously well timed trades.

House Oversight Chairman James Comer asked Polymarket’s Shayne Coplan and Kalshi’s Tarek Mansour on Friday for documents to assess how the platforms verify the identities of account holders, enforce geographic restrictions and monitor suspicious trading activity.

Prediction markets, which allow users to bet on just about anything, have exploded in popularity over the past year and a half. But critics argue some of the profitable bets ...