Prediction markets face DOJ scrutiny over well-timed bets on Nicolás Maduro capture, Iran strikes: sources

Source: New York Post

Federal prosecutors in Manhattan are scrutinizing well-timed bets on prediction markets that have lately grabbed headlines — and are examining whether they may have violated insider trading laws, sources told The Post. Officials at the US Attorney for the Southern District of New York — headed by former Securities and Exchange Commission Chairman Jay Clayton — recently met with reps from Polymarket about lucrative wagers on surprise events like the capture of Nicolás Maduro and missile strikes on Iran, sources close to the situation said. “The action in the prediction markets, like the action in any markets, is stuff that will be looked at,” a source with knowledge of the matter told The Post.