Prediction market Polymarket has partnered with blockchain analytics firm Chainalysis to track and reveal insider trading. There is growing concern about insider trading in prediction markets, in which users bet on the outcome of everything from sporting matches to elections. In April, an Army Green Beret was charged with using classified knowledge of the operation to capture Venezuelan President Nicholas Maduro to win $400,000. He has pled not guilty. Chanalysis will provide data analytics and monitoring systems, investigative tools to provide information for law enforcement and regulators, and onchain security capabilities to assist Polymarket in identifying and eliminating insider trading. The goal is to flag suspicious trading patterns indicating a…
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CFTC, DoJ Sue Arizona Over Kalshi Charges
Agencies seek to block criminal charges against prediction market
The Commodity Futures Trading Commission and Department of Justice have asked a federal court to block Arizona’s indictment of prediction market Kalshi on criminal charges for offering sports gambling without a license. The agency’s move comes days after a New Jersey federal appellate court decision forbidding the state from pressing civil charges against Kalshi after finding that the CFTC has exclusive jurisdiction over prediction market activity on federally regulated exchanges. “Arizona’s decision to weaponize preempted state criminal law against companies that comply with a comprehensive federal regime sets a dangerous precedent,” said CFTC Chairman Michael Selig, in a statement. “The CFTC is committed to vigorously defending its exclusive authority…
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With $4M round, Polymarket predicts success
Can Shayne Coplan’s prediction market turn bets into information? Investors like Olaf Carlson-Wee’s Polychain and Naval Ravikant are wagering yes
Blockchain-based prediction markets like Polymarket allow people to bet on real world events—essentially making them put their money where their mouth is on questions ranging from who will win a presidential debate to whether Drake will release a new studio album this year. Broadly, the idea to use the free market to get better and more accurate information than is available through the tornado of misinformation and bias unleashed by social media.
