House Oversight Chairman James Comer has expanded Congress's investigation into prediction market insider trading, issuing formal information requests to Hyperliquid Labs, Crypto.com, and Aristotle Exchange, the operator of Predictit. All three platforms must provide records by October 13.
The inquiry focuses on whether prediction market platforms adequately prevent government employees, contractors, and insiders from profiting from privileged information. The investigation began in May 2026.
Military Intelligence Case
The expanded probe was prompted by an April 24 federal indictment alleging that U.S. Army Master Sergeant Gannon Ken Van Dyke used classified intelligence concerning Operation Absolute Resolve to place Polymarket wagers that generated more than $409,000 in personal financial gain. Van Dyke has pleaded not guilty to the allegations.
"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. "Americans deserve to know that these platforms are taking steps to prevent insider trading."
Hyperliquid Trade Under Scrutiny
The letter to Hyperliquid co-founder Jeff Yan references a $1.1 billion leveraged short position across bitcoin and ether perpetual contracts that was opened approximately 30 hours before President Donald Trump's October 2025 tariff announcement. The position was reportedly closed shortly after, generating more than $150 million in profit. Congress has not established that the trader possessed advance knowledge but is examining the transaction's timing alongside identity verification and suspicious activity reporting practices.
Additional Platform Requests
Crypto.com founder and CEO Kris Marszalek received a letter examining identity verification differences between its international exchange and Crypto.com Derivatives North America, as well as records concerning employees trading ahead of corporate announcements and government officials betting on cryptocurrency regulatory outcomes.
Predictit co-founder and CEO John Aristotle Phillips was asked to provide records on political-event trading, suspicious activity reporting, and the removal of the platform's per-contract trader limit under CFTC Letter No. 25-20. The platform must also provide a staff-level briefing.
Investigation Progress
Polymarket and Kalshi have already provided Congress nearly 1,000 documents and five briefings. The latest requests cover records dating back to January 1, 2024.
