U.S. senators from both parties asked Kalshi and Polymarket to explain before November 3 how they prevent insider trading and market manipulation in election betting and disclose the number of suspected violations.
SEC CFTC Director of Enforcement David Woodcock said that the SEC is monitoring fraud, insider trading, and manipulation in prediction markets and expects it may take enforcement action in this area in the future.
Solidus Labs found a trader repeatedly placing and canceling large orders and executing trades in the opposite direction in Hyperliquid crude oil perpetual contracts, involving more than 170000000 USD。Hyperliquid Labs said that the relevant records are publicly available on the blockchain.
October 26,Common Sense Leadership Fund published a full-page paid advertisement in The Wall Street Journal, listing eight risks of stock tokenization. Previously, 22 companies, including Microsoft, Goldman Sachs, McDonald’s, and Alphabet, had raised objections.
BlockBeats reported that the U.S. Commodity Futures Trading Commission (CFTC) stated that it is closely monitoring whether there is manipulation in prediction markets.
PANews quoted PaperTrade as saying that it had responded to launch-related controversies including the fair launch, small-order priority, and BTC/ETH market volatility, and that some manipulators BBO users cannot profit consistently.
PANews, citing Galaxy Research, said that CFTC issued guidance on Mention Markets this week; the institution believes that contracts settled based on an individual's autonomous words and actions still face a high structural risk of manipulation.
According to reports, CFTC market oversight staff believe that prediction market contracts settled based on the words or actions of named individuals should be presumed susceptible to manipulation. Exchanges may rebut this presumption with stronger evidence of monitoring and controls.