Polymarket cracks down on insider trading: users found using government confidential information for trading will be referred to the Department of Justice and cooperate with investigations

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ChainCatcher message: Polymarket said in a post on X that, “Last month, we released an upgraded market integrity rule to crack down on insider trading. When we discover that users trade using government confidential information, we refer the matter to the Department of Justice and cooperate with its investigation. Polymarket will never tolerate insider trading, and today’s arrest operation proves that this system works.”

The arrest operation Polymarket referred to involves U.S. federal authorities arresting a special forces soldier this Thursday who was involved in the arrest of Venezuelan President Maduro. The soldier is suspected of profiting more than $400,000 by betting on Maduro’s ouster. People familiar with the matter said federal investigators believe that the special forces member placed more than $33,000 in bets on the prediction market Polymarket just hours before President Trump announced the capture of Maduro in January.

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