Rep. Comer Targets 3 Platforms in Expanded Prediction Market Probe

Congress Turns up the Heat on Prediction Market Insider Trading

A soldier allegedly pocketed more than $409,000 betting on classified military intelligence, while another trader reportedly cleared $150 million after positioning ahead of a presidential tariff announcement. Now Congress wants answers.

On Tuesday, Sept. 29, House Oversight Chairman James Comer (R-Ky.) expanded his prediction market insider trading investigation, sending formal information requests to Hyperliquid Labs, Crypto.com, and Aristotle Exchange, the operator of Predictit. All three have until Oct. 13 to provide records detailing customer verification procedures and suspicious trading controls.

A $409,000 Military Intelligence Case Raises Questions

The press release explains that the investigation began in May 2026, examining whether prediction market platforms adequately prevent government employees, contractors, and other insiders from profiting from privileged information.

The letters cite an April 24 federal indictment alleging that U.S. Army Master Sgt. Gannon Ken Van Dyke used classified intelligence concerning Operation Absolute Resolve, the military operation that resulted in Venezuelan President Nicolas Maduro’s capture, to place Polymarket wagers generating more than $409,000 in personal financial gain. The allegations have not been established as findings of guilt, and the U.S. soldier has pleaded not guilty.

“As online prediction platforms grow and become more mainstream, some bad actors have exploited the platforms to make thousands of dollars by placing bets based on nonpublic information,” Comer said.

The House Oversight Chairman added:

“Americans deserve to know that these platforms are taking steps to prevent insider trading.”

Hyperliquid’s $1.1 Billion Trade Draws Congressional Scrutiny

The Hyperliquid letter, addressed to co-founder Jeff Yan, introduces another eyebrow-raising transaction. Citing published research, lawmakers reference a $1.1 billion leveraged short position across bitcoin and ether perpetual contracts opened approximately 30 hours before President Donald Trump’s October 2025 tariff announcement. The trader reportedly closed the position shortly afterward, collecting more than $150 million in profit.

Congress hasn’t established that the trader possessed advance knowledge, but the timing has drawn scrutiny, alongside concerns about identity verification and suspicious activity reporting. Lawmakers want records covering geographic restrictions, trading surveillance, regulatory compliance, and employees holding government security clearances.

Crypto.com and Predictit Face Separate Demands

Alongside this, the Crypto.com letter, addressed to founder and CEO Kris Marszalek, examines identity verification differences between its international exchange and Crypto.com Derivatives North America (CDNA). Congress also wants records concerning employees trading ahead of corporate announcements and government officials betting on cryptocurrency regulatory outcomes.

Predictit co-founder and CEO John Aristotle Phillips received a separate request examining political-event trading, suspicious activity reporting, and the removal of the platform’s per-contract trader limit under CFTC Letter No. 25-20. Lawmakers want to know whether eliminating that restriction affected liquidity, trading scale, or insider trading detection. Predictit must also provide a staff-level briefing.

Nearly 1,000 Documents Already Collected

The investigation has already yielded nearly 1,000 documents and five briefings from Polymarket and Kalshi representatives, according to the committee’s Sept. 29 announcement.

The latest requests cover records dating back to Jan. 1, 2024, as lawmakers mull whether additional congressional action is warranted. For platforms built around trading on future events, the inquiry presents a thorny question: When somebody knows tomorrow’s government decision today, who can identify the person behind the winning bet?