Story perspectives

Federal Probe Targets Prediction Markets for Insider Trading

4/1/2026

Summary

Story summary

Federal prosecutors in Manhattan investigate prediction markets, including Polymarket and Kalshi, for potential insider trading, led by the U.S. Attorney for the Southern District of New York, Jay Clayton.
Both companies are cooperating with the investigation.
Jay Clayton warns that fraud and manipulation laws apply to prediction markets.
California issued an executive order banning state officials from using insider information.
Arizona filed a criminal case against Kalshi for illegal gambling.

1 of 1

Story summary

Federal prosecutors in Manhattan investigate prediction markets, including Polymarket and Kalshi, for potential insider trading, led by the U.S. Attorney for the Southern District of New York, Jay Clayton.
Both companies are cooperating with the investigation.
Jay Clayton warns that fraud and manipulation laws apply to prediction markets.
California issued an executive order banning state officials from using insider information.
Arizona filed a criminal case against Kalshi for illegal gambling.