Comer Expands House Probe Into Prediction-Market Insider Trading Risks
Letters seek records from Hyperliquid Labs, Crypto.com and Aristotle Exchange on customer checks and suspicious-trade detection.
House Oversight Committee Chairman James Comer expanded a congressional investigation into insider-trading risks on prediction markets Tuesday, seeking records from Hyperliquid Labs, Crypto.com and Aristotle Exchange, the owner of PredictIt.
Letters sent Sept. 29 request information on customer identification, systems for detecting suspicious trades and procedures for reporting potential misconduct to law enforcement. The companies were also asked for related documents and communications.
The inquiry also examines a leveraged Hyperliquid short opened shortly before an October 2025 presidential tariff announcement. Comer said the policy was not publicly known when the trade was placed and cited the position as part of the investigation.
The committee began a separate investigation into Kalshi and Polymarket on May 22. That review covers identity verification, geographic restrictions and anomalous trading activity, and has produced nearly 1,000 documents and five briefings from the two companies.
Prediction markets let users trade contracts tied to events such as elections, sports and geopolitical developments. The expanded inquiry focuses on whether platforms can prevent trading based on confidential information before major announcements.
