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

MeNews · 2026-04-01T09:20:10+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 09:20:10

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ME News update, March 31 (UTC+8). Federal prosecutors in Manhattan, the U.S., are investigating certain prediction-market bets that have generated high payouts to see whether they may violate insider trading and other laws. According to people familiar with the matter, the head of the Securities and Commodities Fraud division 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 could apply to possible misconduct in this fast-developing industry. The U.S. Department of Justice is focusing on those eye-catching high-payout bets, marking an escalation in oversight of the sector. Over the past year, the prediction markets industry has expanded rapidly despite relatively limited federal regulation. (Source: ChainCatcher)

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