Polymarket cracks down on insider trading: If users are found to have traded using classified government information, the case will be handed over to the Department of Justice and an investigation will be conducted.

Polymarket stated in a post on its X platform, "Last month, we released enhanced market integrity rules to combat insider trading. When we discover users using classified government information for trading, we refer the matter to the Department of Justice and cooperate with their investigation. Polymarket has zero tolerance for insider trading, and today's arrest proves the effectiveness of this system." The arrest Polymarket referred to was on Thursday when U.S. federal authorities arrested a special forces soldier involved in the arrest of Venezuelan President Maduro. The soldier is suspected of profiting over $400,000 by betting on Maduro's removal from power. Sources say federal investigators believe the commando placed over $33,000 on the prediction market Polymarket hours before President Trump announced Maduro's arrest in January. For details on insider trading on Polymarket related to the Maduro arrest operation, see "When War is Settled Before News: How Prediction Markets 'Priced' the Maduro Arrest 6 Days in Advance."