Lawmakers Call for Polymarket Insider Trading Probe
Why it matters: Representative Ritchie Torres demands the CFTC investigate Polymarket for potential insider trading after $143 million in suspicious profits.
- U.S. lawmakers are calling for investigations into Polymarket due to suspicious, well-timed bets on geopolitical events.
- At least 50 new Polymarket accounts placed substantial bets on a U.S.-Iran ceasefire hours before President Donald Trump announced it, according to the Associated Press.
- Representative Ritchie Torres sent a letter to the Commodity Futures Trading Commission (CFTC) demanding a review of these trades, citing concerns about access to material nonpublic information.
- Researchers at Harvard University estimated that $143 million in profits have been made on Polymarket by individuals potentially using insider information, spanning events from celebrity engagements to the Nobel Peace Prize.
- Polymarket was banned from the U.S. in 2022 but is attempting to re-enter the country by acquiring a CFTC-licensed exchange.
U.S. lawmakers are demanding investigations into Polymarket after a pattern of well-timed, profitable bets on major geopolitical events, including a U.S.-Iran ceasefire, raised concerns about potential insider trading. Representative Ritchie Torres specifically called on the CFTC to investigate, citing the statistical improbability of such accurate wagers without nonpublic information. This follows a Harvard University study estimating $143 million in profits from potentially insider-informed trades on the platform across various events.
