Polymarket being targeted was expected, with $400k in insider trading and 80 people betting early on an attack; on-chain transparency has instead become evidence in court.

Chairman Comer of the U.S. House Oversight and Reform Committee has sent letters to Kalshi and Polymarket requesting an investigation, demanding information on preventing insider trading, identity verification, geographic restrictions, and abnormal transaction monitoring, stating that internal records are key to identifying accounts profiting from national security intelligence.
The investigation focuses on election results and transactions related to military actions against Iran and Venezuela; previously, a U.S. soldier was arrested for profiting about $400k on Polymarket using intelligence on Venezuela's regime change, and more than 80 users placed orders before the U.S.-Israel airstrike on Iran.