Xinhua News Agency: California Prohibits Officials from Profiting in Prediction Markets Using Insider Information

Odaily News California Governor Gavin Newsom signed a law on the 27th, prohibiting state-appointed executive officials from using insider information to profit in prediction markets. The California Governor's Office stated in a declaration that some U.S. officials, who clearly have access to sensitive federal government information, have exhibited "remarkably precise timing in their bets" within prediction markets. The declaration also criticized certain officials for turning public service into a means for "quick wealth accumulation." It pointed out that four prediction trading cases demonstrate that individuals lacking insider information are highly unlikely to have made the related trades. The profits from these predictions ranged from tens of thousands to millions of dollars, involved multiple U.S. military actions related to Venezuela and Iran, and some predictions were made by accounts opened just days before the actions occurred or bets placed hours before the events. Among them, six suspected insiders bet on a U.S. military strike against Iran, collectively profiting $1.2 million, and they coincidentally opened their prediction market accounts just days before the conflict occurred. (Xinhua News Agency)