U.S. federal prosecutors are investigating whether betting activities in certain prediction markets violate insider trading laws.

MeNews · 2026-04-01T03:08:40+00:00

The Manhattan Federal Prosecutor's Office in the United States is investigating some betting activities that generate high returns in prediction markets, focusing on whether they violate insider trading laws, marking an escalation in regulatory scrutiny of the industry.

MeNews

2026-04-01 03:08:40

Abstract generation in progress

ME News message, March 31 (UTC+8): Federal prosecutors in Manhattan are investigating certain bets on prediction markets that have generated large payouts, to determine whether they violate insider trading and other laws. According to people familiar with the matter, the head of the Securities and Commodities Fraud Division at the Office of the U.S. Attorney for the Southern District of New York recently met with representatives of Polymarket to discuss how to apply existing laws to potential misconduct in this rapidly developing industry. The U.S. Department of Justice is focusing on those eye-catching, high-payout bets, signaling an escalation in regulatory scrutiny of the sector. Over the past year, the prediction market industry has expanded rapidly amid relatively limited federal oversight. (Source: ChainCatcher)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes