US Senator Chris Murphy announced plans to introduce legislation banning prediction markets, calling them 'corrupt and destabilizing.' The move specifically targets platforms like Polymarket amid concerns about war betting and insider trading risks.
Fresh accounts on Polymarket made $1 million hours before U.S. airstrikes on Iran, raising questions about potential insider trading. Meanwhile, one trader who had previously profited $2 million betting against strikes lost $6.5 million in a single day when the attacks occurred.
Six cryptocurrency wallets allegedly profited $1.2 million from trades positioned around Iran's military strikes, raising insider trading concerns. The geopolitical events caused immediate crypto market volatility with assets declining before modest recoveries.
Suspected insider traders profited over $1.2 million on Polymarket by betting on U.S. strikes against Iran before they occurred. The strikes subsequently caused Bitcoin prices to decline and oil futures on Hyperliquid to surge due to escalating regional tensions.