House Expands Probe Into Prediction-Market Insider Trading

House Oversight Chair James Comer is expanding his investigation into potential insider trading on prediction markets, now seeking information from Hyperliquid, Crypto.com, and PredictIt alongside existing probes into Kalshi and Polymarket.

What’s the Scoop?

• Probe Expands: Comer sent letters Tuesday to Hyperliquid Labs, Crypto.com, and Aristotle Exchange, which owns PredictIt, requesting documents on their identity verification procedures and how they detect, investigate, and prevent suspicious trading. The requests expand an investigation he first opened into Kalshi and Polymarket in May.

• Hyperliquid Draws Scrutiny: Comer specifically pointed to a large leveraged short opened on Hyperliquid shortly before an October 2025 U.S. tariff announcement, questioning whether the trader may have acted on information that was not yet public. He also raised concerns around Hyperliquid's identity verification and its ability to identify traders for U.S. law enforcement.

• Part of a Broader Pattern: The investigation follows several high-profile cases involving suspiciously timed prediction-market trades, including an Army soldier accused of using classified information to profit roughly $400K on Polymarket and dozens of accounts flagged for trades made shortly before previously unannounced military actions. Kalshi also permanently banned and fined former Rep. George Santos over bets tied to his own State of the Union appearance.

• Kalshi and Polymarket Probes Continue: The original investigations are still ongoing, with the committee having received nearly 1,000 documents and five briefings from the two companies. Comer has said the broader pattern could ultimately lead Congress to consider additional rules governing insider trading on prediction markets.