The House Oversight Committee has expanded its investigation into potential insider trading on prediction-market platforms to include Hyperliquid, Crypto.com and Aristotle Exchange.
Chairman James Comer requested records on identity verification and systems used to detect, investigate and report suspicious trading. The requests seek information on how the platforms prevent users from trading with nonpublic information.
Hyperliquid Faces Closer Scrutiny
Comer cited a large leveraged short position opened on Hyperliquid shortly before a U.S. tariff announcement. However, the committee has not established that the trader had access to confidential information or violated insider-trading rules.
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The inquiry instead focuses on Hyperliquid’s controls and how the platform identifies and refers potentially improper trading activity.
The scrutiny also follows September charges against two former Robinhood engineers. Federal prosecutors allege the former employees used confidential information about upcoming Robinhood Crypto listings to trade related perpetual futures on Hyperliquid.
Probe Expands to More Platforms
Comer also sent requests to Crypto.com and Aristotle Exchange, which owns PredictIt. The committee is seeking records covering customer verification and procedures for detecting and investigating suspicious trading.
The investigation began in May with requests to Kalshi and Polymarket. The committee said it has since received nearly 1,000 documents and five briefings as it examines how prediction-market platforms monitor trading activity.
The inquiry comes as event-based trading expands beyond political markets into sports, economic events and other markets. Regulators and lawmakers are examining how existing surveillance and compliance systems apply as these platforms broaden their offerings.
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