The U.S. House Committee on Oversight and Accountability has expanded its investigation into alleged insider trading on crypto prediction and derivatives platforms, sending document requests to Hyperliquid, Crypto.com, and PredictIt, with Aristotle Exchange also named in follow-up reporting. Chairman James Comer notified the platforms on September 29, 2026, requesting records on know-your-customer identity verification and systems for detecting, investigating, and reporting suspicious trading.
The inquiry focuses on trades placed minutes before major government announcements. Comer cited a highly leveraged $1.1 billion short position on Hyperliquid opened shortly before U.S. tariffs on China were announced. Although the committee has not established that the trader had access to confidential information or violated insider-trading rules, lawmakers are scrutinizing Hyperliquid's controls and how platforms prevent users from trading with nonpublic information.
The three companies must submit comprehensive documentation covering internal audit and control mechanisms. They join Kalshi and Polymarket, which have already turned over nearly a thousand records to lawmakers. The probe signals that on-chain anonymity on decentralized platforms will not shield suspicious activity from federal investigation, intensifying regulatory pressure on prediction markets and decentralized derivatives exchanges.
