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

MeNews · 2026-04-01T00:04:55+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 00:04:55

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ME News report, March 31 (UTC+8). Federal prosecutors in Manhattan, the United States, are investigating certain guess-and-bet events that have generated large payouts in prediction markets, 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 Unit of the U.S. Attorney’s Office for the Southern District of New York recently met with representatives of Polymarket to discuss how existing laws may apply to potential misconduct in this rapidly evolving industry. The U.S. Department of Justice is placing its focus on those eye-catching high-payout predictions, signaling an escalation in regulatory scrutiny of the sector. Over the past year, the prediction markets industry has expanded rapidly in a context of relatively limited federal oversight. (Source: ChainCatcher)

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