The Commodity Futures Trading Commission has initiated three new investigations into suspected insider trading on Polymarket, as reported by WIRED. These investigations focus on event contracts related to pardons issued by former President Joe Biden, Iran, and Google’s 2025 Year in Search rankings.
CFTC Chairman Michael Selig approved the first investigation in early May, following a trader’s success in pardon-related markets. This trader earned over $300,000 by accurately predicting preemptive pardons. The second investigation, approved at the end of May, involves Iran-related contracts and accounts that reportedly earned $2.4 million with a 98% win rate, as highlighted in a 60 Minutes report.
In July, a third investigation was approved by the CFTC into suspected insider trading concerning Google’s 2025 Year in Search rankings. This probe will involve examining additional individuals, with the Southern District of New York conducting a parallel investigation. The investigation is separate from a case involving former Google engineer Michele Spagnuolo, who allegedly made over $1.2 million trading Polymarket contracts based on confidential information about Google’s 2025 search rankings.
Following four years in exile, Polymarket has been working to rebuild its reputation in the US. The company relaunched in late 2025 after acquiring QCEX, providing limited access to event contracts for Americans under CFTC oversight.
The Justice Department, in conjunction with the CFTC, previously looked into whether Polymarket was evading restrictions on US traders imposed in a 2022 settlement with the CFTC. The investigation concluded in July.
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