Federal authorities are targeting a U.S. servicemember and an employee of the accounting firm KPMG as part of an expanding insider trading investigation focused on prediction markets. The charges are expected to be filed this fall as part of a new wave of cases, according to The Wall Street Journal.
The probe has been examining whether individuals used nonpublic information to profit from the outcomes of political and geopolitical events traded on platforms like PredictIt and Polymarket. These markets allow users to bet on the likelihood of future events, such as election results or policy decisions.
While the specific details of the allegations against the servicemember and the KPMG employee have not been publicly disclosed, the investigation signals a heightened scrutiny of trading activity within these unconventional markets. Regulatory bodies and law enforcement agencies are increasingly looking into the potential for illicit trading based on sensitive information.