Crypto Trading Under Scrutiny: Comer Requests Records From Crypto.com, Hyperliquid and PredictIt

By Kevin · 2026-09-30 · News

WASHINGTON, Sept. 30 (CandyPulse) — Congress is taking a closer look at who's trading on prediction markets, and what they might know. House Oversight Committee Chair James Comer has widened an investigation into possible insider trading, sending letters to Crypto.com, Hyperliquid and PredictIt requesting records on how they verify users and catch suspicious trades.

Key takeaways

Letters went to the CEOs of Hyperliquid Labs, Crypto.com and PredictIt owner Aristotle Exchange
Comer wants details on identity checks, tools for flagging insider trades and referrals to authorities over the past 2.5 years
The platforms have until Oct. 13 to respond
It's the second wave of a probe that began with Kalshi and Polymarket in May

What Comer is asking for

The letters, sent Tuesday, ask each company how it identifies its customers and how it spots trades that could be based on nonpublic information, according to The Block and CNBC. Each letter also has a specific focus:

Hyperliquid: reports of a large leveraged short position placed shortly before a major U.S. tariff announcement last October, and how the platform identifies account holders.
Crypto.com: whether employees of any affiliates traded contracts about corporate decisions before they were public, and whether any government officials traded contracts tied to crypto regulation.
PredictIt: trades linked to elections, nominations and other government actions involving current or former officials.

Why it matters

Prediction markets let people bet on real-world events, from elections to policy decisions. That makes them unusually exposed to insider trading: someone who knows the outcome in advance can profit almost risk-free. As these platforms have grown, lawmakers have become increasingly concerned about officials and insiders using them.

This isn't new pressure. The investigation started in May with Kalshi and Polymarket, which have reportedly handed over nearly 1,000 documents across five briefings.

Important context

A request for records is not an accusation of wrongdoing. None of the three platforms has been charged with anything, and the letters are an information-gathering step.

What's next

All eyes are on the Oct. 13 deadline. What the platforms hand over could shape new rules for prediction markets, a sector that includes on-chain players like CandyBet, launching soon on CandyChain.

This article is for information only and is not legal or financial advice.