House expands prediction market insider trading probe to Hyperliquid and Crypto.com

The House Oversight Committee has expanded its investigation into potential insider trading on prediction markets, requesting records from Hyperliquid Labs, Crypto.com and Aristotle-linked prediction market operations. Committee Chairman James Comer sent letters Tuesday seeking information on how the platforms verify users, enforce geographic restrictions and detect trades that may involve nonpublic or classified government information. The requests cover records dating back to January 2024 and set an October 13 deadline for responses. The probe began in May with Polymarket and Kalshi, when Comer asked the two platforms for documents detailing their know-your-customer procedures, suspicious trading controls and methods for restricting access in prohibited jurisdictions. The committee said Monday that it has since received nearly 1,000 documents and five briefings from representatives of Polymarket and Kalshi as it continues examining whether prediction markets have adequate safeguards against traders using sensitive information. The latest letters extend that scrutiny beyond dedicated prediction market platforms. For Hyperliquid, lawmakers specifically pointed to a large leveraged ...