As prediction markets gain popularity, it’s only a matter of time before insider trading prosecutions catch up, Noah Solowiejczyk told the Wall Street Journal this week, as speculation swirled about an anonymous trader’s more-than $400,000 windfall wagering on the ouster of Venezuelan President Nicolás Maduro.
“Given how prevalent these incidents seem to be and how they are getting a lot of attention, I tend to think that eventually it is very likely we will see one of these cases,” he said.
The issue made headlines after someone reportedly won $410,000 on Polymarket by placing a series of bets that Maduro would be ousted shortly before his arrest.
Solowiejczyk told the Wall Street Journal that U.S. officials that misuse government information to trade can be prosecuted under existing laws against insider trading in swap contracts.
Read the full article in the Wall Street Journal.