CFTC Launches Three Insider Trading Investigations on Polymarket Prediction Markets
The U.S. Commodity Futures Trading Commission (CFTC) has authorized three investigations into potential insider trading involving contracts on the prediction market platform Polymarket, according to records obtained via a FOIA request by WIRED. The probes cover markets related to former President Joe Biden's pardons, Iran-related events, and Google’s 2025 Year in Search rankings. These investigations add regulatory scrutiny to how prediction markets handle confidential or nonpublic information. The first probe was approved in May regarding contracts tied to Biden’s pardons after a trader reportedly earned over $300,000 from successful bets on individuals likely to be pardoned. A second investigation also launched in May looked into Iran-related trades where accounts generated about $2.4 million with an unusually high success rate. In July, the CFTC opened another probe targeting contracts linked to Google’s Year in Search rankings. These investigations follow prior enforcement actions by the CFTC against individuals accused of using insider information for profit on Polymarket. The agency has also charged a former Google employee and a U.S. Army service member with similar violations, signaling its intent to actively pursue such cases as prediction markets grow.
Topics: CFTC FOIA records insider trading Polymarket prediction markets