A group of 12 senators signed and sent a letter asking Commodity Futures Trading Commission (CFTC) Chair Michael Selig to explain the regulator’s approach to insider trading on prediction markets.
The letter, dated Sunday, followed reports of activity that appeared consistent with insider trading on prediction market Polymarket, on contracts related to former Venezuelan President Nicolas Maduro.
On Polymarket’s global exchange, which is not registered with the CFTC, a recently created account made $436,000 in profit from betting that Nicolas Maduro would be removed as president of Venezuela, shortly before he was captured by U.S. forces.
Polymarket’s global site has rules prohibiting market manipulation, but does not have any rules directly banning insider trading.
