Exclusive: Federal prosecutors are exploring whether prediction market bets trip insider trading laws | CNN Politics

Federal prosecutors in Manhattan are exploring whether certain lucrative bets placed on prediction markets have violated insider trading and other laws, multiple sources told CNN. The chiefs of the securities and commodities fraud unit of the US attorney’s office for the Southern District of New York recently met with representatives of Polymarket, one of the leading prediction market platforms, to discuss how existing laws could be applied to potential misconduct in the fast-growing industry, according to people familiar with the matter. The Justice Department’s focus on headline-grabbing profitable bets is an escalation against an industry that recently saw an explosion of growth in the past year, largely uninhibited by federal regulators. Prosecutors are investigating lucrative trades, including the timing of the capture of Venezuelan leader Nicolás Maduro, one source said. Exclusive: Trader made nearly $1 million on Polymarket with remarkably accurate Iran bets “As a general matter, our Office meets with market participants to discuss market activity and application of the law,” Nicholas Biase, a spokesman for the US attorney’s office, said in a statement to CNN. “