House Oversight Committee Chairman James Comer has expanded a congressional investigation into potential insider trading on prediction markets, seeking records from Crypto.com, Hyperliquid and PredictIt on identity verification, suspicious trading and referrals to regulators.
The committee’s document requests, sent on September 29, 2026, broaden a probe that began in May with inquiries to Polymarket and Kalshi. The committee said it is examining whether users, including government employees, contractors and other insiders, can use nonpublic or classified information to profit from event contracts.
Key takeaways
- The House Oversight Committee wants Crypto.com, Hyperliquid and PredictIt to provide documents covering identity checks, geographic restrictions and suspicious trading controls.
- Hyperliquid faces questions about a roughly $1.1 billion leveraged Bitcoin and Ether short opened ahead of an October 2025 U.S. tariff announcement.
- Crypto.com is being asked about employee trading around corporate decisions and government officials trading contracts connected to crypto regulation.
- PredictIt has been asked to provide information on suspicious trades involving elections and government actions, as well as the effect of removing its per-contract trader limit.
- The companies have been asked to respond by October 13, 2026.
Hyperliquid’s $1.1 billion short trade draws scrutiny
The Hyperliquid request focuses partly on reports of a large leveraged short position involving Bitcoin and Ether perpetual contracts that was established before President Donald Trump announced a U.S. tariff policy in October 2025.
The committee’s letter cites an analysis describing a roughly $1.1 billion short opened about 30 hours before Trump’s announcement and closed shortly afterward, reportedly generating more than $150 million in profit. However, the letter does not establish that the trader had advance knowledge of the government decision or that the transaction constituted insider trading.
Comer is asking Hyperliquid for records covering its identity verification and Know Your Customer (KYC) procedures, geographic access restrictions and systems used to identify anomalous trading. The committee also wants information on trades or accounts flagged as suspicious and any referrals to the Department of Justice, Commodity Futures Trading Commission or other U.S. authorities.
The request also covers any event contracts linked to Federal Reserve decisions, elections and geopolitical outcomes. A Hyperliquid Labs spokesperson told The Block that the company was aware of the request and was reviewing it.
Crypto.com faces questions about employee and government trading
The Crypto.com request takes a broader look at how the exchange handles potential conflicts involving employees, affiliates and government officials. Comer asked for details on identity verification procedures across Crypto.com’s international exchange and Crypto.com Derivatives North America, including geographic restrictions intended to prevent U.S. users from accessing the international platform.
The committee also wants records of suspicious trades and referrals to regulators or law enforcement since January 2024. In addition, it asked whether employees, contractors or affiliates with advance knowledge of digital asset listings, delistings, liquidity or custody decisions were restricted from trading related event contracts. Another request seeks information on current or former federal officials who may have traded contracts connected to cryptocurrency regulatory outcomes or Crypto.com’s own regulatory status.
PredictIt request focuses on political contracts
PredictIt, operated by Aristotle Exchange, received a separate request focused heavily on political event contracts. The committee wants records covering identity verification, suspicious trading detection and referrals to authorities. It specifically requested information on trades involving elections, nominations, confirmations, legislative actions and other government decisions.
Comer also asked PredictIt to provide documents concerning the removal of its per-contract trader limit under CFTC Letter No. 25-20, including any analysis of whether the change affected trading scale, liquidity or the platform’s ability to identify potential insider trading. The company has also been asked to provide a staff briefing, with the overall request covering January 2024 onward and a response deadline of October 13, 2026.
Investigation could shape prediction market rules
The latest requests build on the committee’s May investigation into Polymarket and Kalshi. According to the House Oversight Committee, those platforms have provided nearly 1,000 documents and participated in five briefings with investigators.
The investigation was prompted by concerns about whether platforms can adequately prevent insider trading.
The committee has also cited the April 2026 indictment of U.S. Army Master Sergeant Gannon Ken Van Dyke. Prosecutors alleged that he used classified information related to a U.S. military operation to make more than $409,000 through Polymarket wagers. An indictment does not establish guilt.
Comer said the investigation is intended to determine whether platforms are meeting their legal obligations and whether additional congressional action is necessary.
What happens next
The expanded requests put identity verification and market surveillance under closer congressional examination across both crypto trading infrastructure and prediction markets. For Hyperliquid, the focus includes a high-value derivatives trade and event contracts, while Crypto.com faces questions about employee and government-related trading. PredictIt is being examined primarily through its political markets and trading controls.
The companies have been asked to provide the requested information by October 13, 2026. Their responses could give the committee a broader view of how platforms detect suspicious activity and handle users who may have access to nonpublic information.
