Hyperliquid, Crypto.com, and PredictIt are under investigation for alleged insider trading. James Comer, Chairman of the U.S. House Committee on Oversight and Accountability, sent notification letters to the 3 platforms. The probe centers on highly suspicious trades executed minutes before major government announcements, highlighting a $1.1 billion short position on Hyperliquid opened moments before tariffs on China were announced.
This scrutiny intensifies regulatory pressure on prediction markets and decentralized derivatives platforms (DEXs). Lawmakers are demanding direct explanations regarding their know-your-customer (KYC) identity verification protocols and anomalous trading detection systems. For the broader ecosystem, this action signals that on-chain anonymity on decentralized platforms will not prevent federal authorities from investigating fraudulent maneuvers involving non-public information.
The three companies must submit comprehensive documentation covering their internal audit and control mechanisms, joining firms such as Kalshi and Polymarket, which have already turned over nearly a thousand records to U.S. lawmakers.
Source: https://www.cnbc.com/2026/09/29/comer-house-prediction-market-insider-trading.html
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