House Oversight expands prediction market insider trading probe to Hyperliquid, Crypto.com and PredictIt
House Oversight Committee Chairman James Comer has widened his investigation into prediction markets, demanding records from Hyperliquid Labs, Crypto.com, and PredictIt parent Aristotle Exchange regarding insider trading protections and identity checks.
House Oversight Committee Chairman James Comer widened his investigation into prediction market insider trading, sending document requests to the chief executives of Hyperliquid Labs, Crypto.com, and Aristotle Exchange Inc., the parent company of PredictIt. According to CNBC, Comer asked how the platforms verify customer identities and what mechanisms exist to flag and prevent trades based on nonpublic information, citing concerns that bad actors are exploiting platforms to profit from confidential developments.[1][3][4]
In a letter to Hyperliquid CEO Jeff Yan, Comer highlighted a leveraged short position established minutes before an October 2025 presidential tariff announcement by Donald Trump, noting the decision was not yet public knowledge. The trade yielded approximately $192 million after a 100% tariff on Chinese imports was announced. Comer expressed concern that the transaction occurred on a platform lacking identity verification or a process to refer suspected bad actors to U.S. law enforcement.[2][3]
The letters also seek records concerning government insiders, employee trades, and suspicious activity referrals. The move expands an inquiry initiated in May targeting Kalshi and Polymarket following reports of suspiciously timed bets ahead of military strikes on Iran. Those investigations remain active, with a committee spokesperson noting that Kalshi and Polymarket have provided nearly 1,000 documents and five briefings so far.[3][4]
Key facts
- House Oversight Committee Chairman James Comer expanded his prediction market insider trading investigation to Hyperliquid Labs, Crypto.com, and PredictIt operator Aristotle Exchange Inc.
- Comer sent document requests to each company's CEO inquiring about user identity verification, employee trading, and systems to catch and refer insider trades to law enforcement.
- Comer's letter to Hyperliquid CEO Jeff Yan cited an October 2025 leveraged short position placed minutes before President Donald Trump announced 100% tariffs on Chinese imports, netting about $192 million.
- The committee previously opened probes into Kalshi and Polymarket in May 2026, which remain active after yielding five briefings and nearly 1,000 documents.
Sources · 4 sources
- DN
DEGEN NEWS@DegenerateNewsPost on X ·
NEW: U.S. HOUSE OVERSIGHT EXPANDS PREDICTION MARKET INSIDER TRADING PROBE TO @HyperliquidX, @cryptocom “CHAIRMAN COMER TODAY SENT NEW LETTERS TO THE CHIEF EXECUTIVE OFFICERS OF HYPERLIQUID LABS, https://t.co/QSmBx2EFH6, AND ARISTOTLE EXCHANGE, INC. REQUESTING DOCUMENTS AND INFORMATION TO BETTER UNDERSTAND HOW THEY IMPLEMENT IDENTITY VERIFICATION PROCEDURES FOR ACCOUNT OWNERS AND IDENTIFY AND PREVENT INSIDER TRADING ON THEIR PLATFORMS” SOURCE: https://t.co/CquYs4Zhuj
Open source - LS
Laura Shin@laurashinPost on X ·
Comer's letter to Hyperliquid CEO Jeff Yan cites a leveraged short on the platform tied to an October 2025 tariff announcement "that was not publicly known at the time the position was established." https://t.co/c9dpTpXwBC
Open source - UN
UnchainedArticle ·
House Oversight Targets Hyperliquid, Crypto.com and PredictIt in Insider Trading Probe House Oversight Committee Chairman James Comer (R-Ky.) widened his investigation into insider trading on prediction markets on Tuesday, sending document requests to Hyperliquid Labs , Crypto.com and Aristotle Exchange Inc. , the company that owns PredictIt, according to CNBC. Comer, in letters addressed to each company’s CEO, asked how the platforms verify who their users are and what systems they have to catch and report trades that may rest on nonpublic information, CNBC reported Tuesday. “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 reportedly said in a statement. “The House Oversight Committee is investigating whether these platforms are fulfilling their legal obligations and doing enough to identify and prevent insider trading before it happens.” Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . The Hyperliquid Trade In his letter to Hyperliquid CEO Jeff Yan , Comer cited reports of “a substantial leveraged short position on the … platform within minutes of a presidential announcement concerning a U.S. tariff policy in October 2025 that was not publicly known at the time the position was established.” Comer called the trade “precisely timed to a nonpublic government decision,” and wrote that it happened “on a platform with apparently no identity verification or mechanism to refer the responsible party to U.S. law enforcement.” On Oct. 10, 2025, a trader who shorted the market on Hyperliquid made about $192 million after President Donald Trump announced 100% tariffs on Chinese imports, setting off speculation about advance knowledge. Former BitForex CEO Garrett Jin, whom a pseudonymous onchain sleuth linked to that position, denied any ties to Trump or insider trading. Hyperliquid launched its own event contracts in May through its HIP-4 upgrade, and later that month extended them to offchain events such as inflation data and Federal Reserve decisions. Kalshi and Polymarket Inquiry Continues Comer opened the probe on May 22 with letters to Kalshi and Polymarket , pointing to a New York Times investigation that found more than 80 Polymarket users had placed suspiciously timed bets, including wagers hours before U.S. and Israeli strikes on Iran. Both companies pushed back at the time. The Kalshi and Polymarket inquiries are still active. So far, the two companies have provided the committee with nearly 1,000 documents and five briefings, a committee spokesperson told CNBC. Related Listen: DEX in the City: Why Prediction Market ‘Insider Trading’ Isn’t Illegal — Yet The post House Oversight Targets Hyperliquid, Crypto.com and PredictIt in Insider Trading Probe appeared first on Unchained .
Open source - TB
The BlockArticle ·
Comer presses Crypto.com, Hyperliquid and PredictIt on identity checks and suspicious trades Comer’s expanded probe seeks records on government insiders, employee trades and suspicious activity referrals.
Open source