Trump's eldest son linked to Kalshi and Polymarket, raising questions over conflicts of interest and information advantages

Odaily News As prediction markets gradually expand into the realms of politics and government decision-making, insider trading risks are becoming a regulatory focus. U.S. prediction market platform Kalshi has stated that it has identified multiple suspected cases of insider trading and has submitted the relevant leads to federal regulators.

Kalshi spokesperson Laura Frank stated that the company prohibits market manipulation and insider trading and has established a trading surveillance system similar to those used in securities markets. Earlier this year, Kalshi's monitoring system flagged suspicious trading activity by former Congressman George Santos in markets related to the U.S. President's State of the Union address. The company subsequently submitted its investigative findings to the U.S. Commodity Futures Trading Commission (CFTC).

Additionally, federal agencies are investigating whether former White House teleprompter operator Gabriel Perez used advance knowledge of Trump's speech content to trade on Kalshi-related markets.

Meanwhile, the Trump family is accelerating its push into the prediction market space. Trump Media & Technology Group is developing a prediction market platform called TruthPredict, which will allow users to trade prediction contracts tied to major events. The company is also launching Truth API, providing Wall Street with high-speed data access to Truth Social content.

Donald Trump Jr., the eldest son of the former president, currently serves as a strategic advisor to Kalshi, while his venture capital firm, 1789 Capital, has invested in rival Polymarket and joined its advisory board. This means the Trump family is simultaneously linked to the two leading prediction market platforms, while Trump Media Group is also building its own prediction market business.

Although there is currently no public evidence showing that Donald Trump Jr. or the Trump family has traded using inside government information, the potential conflicts of interest arising from the intertwining of presidential public information, market trading, and family business interests are drawing growing external scrutiny.

As of now, Donald Trump Jr.'s team and Trump Media & Technology Group have not immediately responded to requests for comment. (Fortune)