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Polymarket cracks down on insider trading: users found using government confidential information for trading will be referred to the Department of Justice and cooperate with investigations
Odaily Planet Daily reports that Polymarket posted on the X platform stating, “Last month, we released enhanced market integrity rules to combat insider trading. When we discover users trading using government confidential information, we refer the matter to the Department of Justice and cooperate with their investigation. Polymarket does not tolerate insider trading, and today’s arrests demonstrate that this system works effectively.”
The arrest action mentioned by Polymarket involved U.S. federal authorities arresting a special forces soldier this Thursday who participated in the arrest of Venezuelan President Maduro. The soldier is suspected of profiting over $400k by betting on Maduro’s removal. An informed source said federal investigators believe that this assault team member placed bets of over $33k on the prediction market Polymarket just hours before President Trump announced the capture of Maduro in January.
For details about insider trading related to Maduro’s arrest on Polymarket, read “When War Precedes News Settlement: How Prediction Markets ‘Price In’ Maduro’s Arrest 6 Days in Advance.”