Insider Trading? New Polymarket Account Made 12x Gain On Venezuela Intervention

Following President Trump's Venezuela actions, concerns of insider trading in prediction markets have surfaced. A new Polymarket account made significant profit by betting on US military intervention before it happened, raising suspicions. A US House representative plans to introduce a bill prohibiting government officials from profiting from insider information in prediction markets. The account, created on December 27, wagered heavily on US intervention and Maduro's removal, achieving substantial gains. Officials had reportedly planned the operation for days amid preparations which had spanned weeks, fueling speculation about potential leaks. While others also bet on the outcome, the specific account's gains ignited the investigation. The proposed "Public Integrity in Financial Prediction Markets Act" targets those wielding access to government secrets. The bill aims to restrict officials' trading on prediction markets related to government actions or political outcomes. Platforms like Kalshi have their own rules against insider trading, but a federal law is still needed.