Sen. Elizabeth Warren (D-Mass.) reiterated on Wednesday her misgivings over suspected insider trading in bets tied to U.S. military strikes on Iran.
Warren Raises Alarm Over Iran Bets Again
Warren, citing an April report by The Guardian, pointed to traders placing “perfectly-timed” bets on U.S. strikes on Iran in February and netting millions.
“Was that just luck? Looks like insider trading to me,” the senior lawmaker said.
Iran Bets Under Scanner
Blockchain analysis revealed earlier that six suspected insider accounts made $1.2 million at the exact time of the U.S. strikes on Iran.
Later, newly created anonymous accounts booked over $480,000 in profits by betting on a ceasefire before April 7.
A recent report revealed that Polymarket insiders were profiting significantly from war bets. It found low-probability bets in war markets win at more than triple the rate prices suggest they should.
Warren has repeatedly flagged the issue, including by sending a letter in March to the Commodity Futures Trading Commission and the Office of Government Ethics. She, along with 37 other lawmakers, urged regulators to crack down on illegal insider trading in prediction markets by federal employees.
And the concerns are not unfounded.
Last month, a U.S. soldier was charged with allegedly using classified information to profit on a Polymarket bet linked to the capture of Venezuela’s ousted leader, Nicolás Maduro.
Senate Bans Prediction Market Betting
Notably, the Senate unanimously passed a resolution last week that bans Senators, Officers, and staff from participating in prediction markets.
Kalshi and Polymarket, the leading players in the industry, praised the decision as a major step toward building greater trust in these markets.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
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