Polymarket cracks down on insider trading: If users are found to be trading based on classified government information, the matter will be referred to the Department of Justice, and Polymarket will cooperate with the investigation.

Odaily reported that Polymarket posted on platform X, stating, "Last month, we released enhanced market integrity rules to crack down on insider trading. When we discovered that a user was trading using classified government information, we referred the matter to the Department of Justice and are cooperating with their investigation. Polymarket has zero tolerance for insider trading, and today’s arrest proves this system is effective."

The arrest Polymarket referred to occurred this Thursday, when U.S. federal authorities detained a special forces soldier involved in the operation to arrest Venezuelan President Nicolás Maduro. The soldier is suspected of profiting over $400,000 by betting on Maduro’s downfall. According to sources, federal investigators believe that the commando placed over $33,000 in bets on the prediction market Polymarket just hours before President Trump announced Maduro’s capture in January.

For more details on the insider trading related to Maduro’s arrest on Polymarket, please read: When War Settles Before the News: How Prediction Markets 'Priced In' Maduro’s Arrest Six Days Early