US Representative Ritchie Torres plans to introduce a bill targeting insider trading on prediction markets following scrutiny over a profitable bet on the capture of Venezuelan President Nicolás Maduro. The proposed law would ban federal officials from trading on platforms like Polymarket based on nonpublic government information.

A new Polymarket account bet $32,000 on Maduro’s ouster, earning over $400,000 when US forces reportedly captured him. The account had limited activity, sparking suspicion of insider trading. Kalshi’s press relations account emphasized that its rules prohibit insiders from trading with nonpublic information.

Reports of account breaches on Polymarket emerged as users experienced unauthorized login attempts and drained balances. Polymarket attributed the issue to a vulnerability from a third-party provider, affecting a small number of users. The company assured that the problem has been resolved, with impacted users to be notified.

Read more at Cointelegraph: Ritchie Torres Targets Insider Trading on Prediction Markets