Regulation· ★★★· bearish·

Pentagon bans military insider trading on Polymarket, Kalshi after $400K betting scandal

  • —The ban covers classified and unclassified information and names Polymarket and Kalshi directly
  • —Master Sergeant Gannon Van Dyke allegedly wagered about $33,000 and earned over $404,000 after the Jan. 3 operation
  • —Violators face administrative penalties, disciplinary proceedings or prosecution under the UCMJ
  • —The CFTC filed a parallel civil case, its first insider-trading action involving event contracts
Why it matters: Scrutiny of prediction markets is intensifying, and restrictions on government employees could curb liquidity in geopolitical contracts.
Source: Cryptonews.net
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