James Comer Launches House Probe Into Prediction-Market Insider Trading as $1.2 Million Case Widens Alarm
Updated
Updated · Baltimore Sun · Jul 4
James Comer Launches House Probe Into Prediction-Market Insider Trading as $1.2 Million Case Widens Alarm
1 articles · Updated · Baltimore Sun · Jul 4
Summary
May brought a House Oversight probe from Chairman James Comer into insider trading on Polymarket and Kalshi, with Comer calling the fast-growing market landscape "the Wild West."
Federal scrutiny has already escalated: the CFTC filed its first prediction-market insider-trading complaint in April, alleging a U.S. soldier used classified Venezuela operation details to make a $400,000 profit on Polymarket.
Prosecutors also charged a Google software engineer with using internal search data to win $1.2 million on a Polymarket contract tied to a singer topping Google's 2025 search list.
George Santos is now under a separate insider-trading investigation after allegedly betting against his own attendance at Trump's State of the Union, highlighting how public officials can monetize privileged knowledge or control over events.
The backlash has spread beyond regulators to Congress and corporate America, with lawmakers proposing bans on "death bets" after more than $500 million was wagered around the February Iran strikes.