- House Oversight Chairman James Comer sent letters to Hyperliquid Labs, Crypto.com, and Aristotle Exchange (which operates PredictIt), continuing a probe into insider trading on prediction-market and crypto platforms
- The Committee is requesting documents on identity verification procedures, methods for detecting and preventing insider trading, and how platforms verify users’ geographic location
- The letters continue a May 2026 investigation under which Polymarket and Kalshi have already provided nearly 1,000 documents and five briefings to the Committee
The House Committee on Oversight and Government Reform announced in a release published on its official website on September 29, 2026 that Chairman James Comer sent letters to three additional platforms as part of an ongoing investigation into insider trading on online prediction markets: Hyperliquid Labs, Crypto.com, and Aristotle Exchange, Inc., which operates PredictIt.
The letters request documents and information covering three main areas: identity verification procedures for account owners, the methods each platform uses to detect and prevent insider trading, and how platforms verify users’ geographic location, a requirement relevant to platforms that are supposed to restrict certain betting products to jurisdictions outside the United States or to non-U.S. persons.
“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 in the release, adding that the Committee is investigating whether these platforms adequately fulfill their legal obligations to prevent such misconduct.
The new letters extend an investigation the Committee first opened in May 2026, initially focused on Polymarket and Kalshi. According to the release, those two platforms have already turned over nearly 1,000 pages of documents combined and participated in five briefings with Committee staff, giving investigators a substantial existing base of information before expanding the inquiry to additional platforms including Hyperliquid, a decentralized derivatives and prediction-market venue, and Crypto.com, a large centralized exchange that has moved into prediction markets more recently.
The expansion signals that the Committee views potential insider trading and inadequate identity verification as an industry-wide concern rather than one confined to the two largest, most prominent prediction-market operators. With prediction markets having grown rapidly in trading volume and mainstream visibility over the past two years, particularly around political and macroeconomic events, congressional scrutiny of how well these platforms police their own users is likely to keep intensifying, and the documents ultimately produced by Hyperliquid, Crypto.com, and PredictIt could shape how regulators think about identity and surveillance requirements for the sector going forward.
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