Terra Luna Classic (LUNC) has jumped double-digits over the past day, in a late reaction to this week’s lawsuit filed by Terraform Labs' bankruptcy administrator against trading firm Jane Street. LUNC surged 15.5% over the past 24 hours and is up nearly 30% over the past two weeks, according to CoinGecko data. The sudden uptick was driven by spot buyers, with derivatives data showing open interest climbing from $100 million to $160 million, per Velo data. As the rally accelerated, futures' cumulative volu ...

Axiom’s Insider Trading Scandal Spills Into Prediction Markets - Moby THE GIST Alleged crypto insiders didn’t just trade on private information — they may have bet on getting caught. Blockchain investigator ZachXBT’s latest report accuses employees at Axiom Exchange of abusing sensitive user wallet data to profit from meme-coin trades. But the scandal doesn’t stop there. According to the report, several wallets placed sizable bets on prediction markets anticipating which company ZachXBT would expose, wi ...

By Chris Prentice NEW YORK, Feb 25 (Reuters) - U.S. Commodity Futures Trading Commission (CFTC) on Wednesday ‌said it has the power to police ‌illegal trading practices in predictions markets, following a statement from ​a top firm that it had flagged two insider trading cases to the agency. The CFTC said it has the "full authority" to police such misconduct ‌in event market ⁠contracts, citing a statement from Kalshi that the firm had flagged and frozen ⁠traders' accounts related to two incidents of insi ...

When Robert DeNault joined Kalshi’s four-person legal team in October, it was under the assumption that his background investigating white collar crimes could come in handy.  Now serving as the prediction market’s head of enforcement, the former associate at law firm White & Case told Decrypt that Kalshi is preparing to disclose a wave of disciplinary actions that have been taken against users—the result of a monthslong effort to clean up a “backlog” of potential trading violations. “It’s taken a big chunk ...

Recent cases of surging prices in prediction markets for the correct outcome of an event just before official news breaks may look like notorious insider-trading scandals. But that is a flawed comparison https://t.co/f7ApdY11Gx ...

Here’s why a ban on insider betting might do more harm than good https://t.co/zlF76HKOzW ...

It’s OK for politicians to practice insider “trading”But it’s not OK for Trump’s family to create crypto businesses?unusual_whales (@unusual_whales):BREAKING: Cantor Fitzgerald, now run by Howard Lutnick’s sons, has been buying the rights to potential tariff refunds at roughly 20–30% of the refund value. For example, a company that paid $10 million in tariffs might sell refund rights for $2–$3 million.Supreme Court ...

Core Viewpoint - The rapid growth of prediction markets in the US is facing significant legal challenges, with lawmakers and regulators arguing that these platforms are essentially gambling operations disguised as financial exchanges [1][6]. Industry Overview - Prediction markets allow users to trade on various outcomes, including sports and elections, by betting against one another rather than against a house, with platforms collecting transaction fees [3]. - Kalshi reported over $1 billion traded on Super Bowl Sunday and nearly $10 billion in January, primarily related to sports [2]. Regulatory Landscape - Prediction markets are classified as "event derivatives" and are regulated under federal commodities law by the CFTC, allowing them to operate in all 50 states for users aged 18 and older [4]. - In contrast, licensed sportsbooks are restricted to states where sports betting is legalized and must comply with various consumer protection regulations [5]. Legal Challenges - At least 20 federal lawsuits have been filed, with states arguing that prediction markets evade state gambling laws and taxes [1][6]. - New York's gaming commission ordered Kalshi to cease operations related to sports contracts, leading to legal challenges from the company [8]. Political and Legislative Actions - Several states are advancing legislation to regulate or ban prediction markets, with proposals to restrict participation to individuals over 21 [16][26]. - The CFTC has faced pressure from lawmakers to not override state laws regarding sports betting [25]. Industry Response - Companies like Kalshi and Polymarket assert that they are regulated futures exchanges and not gambling operators, emphasizing the need for consistent national oversight [7][14]. - Both companies have implemented measures to monitor for insider trading and market manipulation, claiming adherence to standards similar to those of traditional exchanges [19][20]. Broader Implications - The debate over prediction markets raises questions about the commoditization of human events and the potential for insider trading, as highlighted by concerns from state representatives [17][32]. - Advocacy groups are calling for regulations that prioritize player health and safety, likening the risks of prediction markets to traditional gambling [29][30].

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RT Nick Cleveland-Stout (@nick_clevelands)Appears to be the first arrests related to insider trading on Polymarket. One user made $150k last year on Polymarket trading on the war between Israel and Iran. https://t.co/fIVGhVHNI2 ...