The US House Oversight and Government Reform Committee has opened a formal investigation into potential insider trading on prediction market platforms Kalshi and Polymarket. The probe, initiated on May 22 under Committee Chairman Rep. James Comer (R-KY), centers on high-stakes wagers that appear to have been placed with advance knowledge of major geopolitical events.
Letters, subpoenas, and suspicious timing
The committee sent letters to the CEOs of both Kalshi and Polymarket requesting documentation on user verification protocols and anti-insider trading enforcement mechanisms. The inquiry is specifically focused on sizable bets connected to US military actions against Iran and the political situation in Venezuela involving Nicolás Maduro.
Democratic lawmakers, particularly Rep. Chris Pappas (D-NH), had been pushing for subpoenas for records related to potentially corrupt trading activity in the days leading up to the formal announcement. Those demands surfaced around May 11-13, roughly a week and a half before the investigation went public.
Allegedly suspicious trades on these platforms resulted in profits exceeding $1 million from specific “Yes” contracts placed around key geopolitical events.
