Polymarket Insiders Profited Big Just Before the US Capture of Venezuela’s President
A cluster of suspicious wagers netted greater than $630,000 on Polymarket after betting on the arrest of Venezuelan President Nicolás Maduro.
The exercise triggered a swift legislative response in Washington, with lawmakers shifting to ban federal officers from buying and selling on prediction markets.
Lawmakers Move to Bar Officials From Prediction Markets
On January 4, blockchain analytics agency Lookonchain recognized three digital wallets that netted a mixed revenue of $630,484 on Polymarket by betting on the removing of Maduro.
Notably, the wallets have been created and funded days earlier than the operation, had no prior buying and selling historical past, and solely focused contracts tied to the Venezuelan chief.
According to on-chain information, one pockets recognized as “0x31a5” wagered about $34,000 and booked practically $410,000 in revenue, whereas one other turned $25,000 into $145,600. The third pockets transformed a $5,800 wager into roughly $75,000.
The precision of the trades—executed shortly earlier than the information broke globally—suggests the bettors could have possessed superior data of the delicate diplomatic and army maneuver.
Considering this, Lookonchain mentioned that these wallets’ trading patterns strongly suggested they had “insider” access to non-public information.
Consequently, the incident has catalyzed a direct push to close regulatory loopholes.
Rep. Ritchie Torres reportedly plans to introduce the Public Integrity in Financial Prediction Markets Act of 2026. The invoice would bar authorities insiders from benefiting from outcomes they’ll affect or anticipate.
According to experiences from Punchbowl News, which Torres acknowledged on social media, the laws would impose a strict ban.
It would prohibit federal elected officers, political appointees, and government department staff from shopping for, promoting, or exchanging contracts on platforms such as Polymarket and Kalshi.
“The restriction applies to purchasing, promoting, or exchanging prediction market contracts tied to authorities coverage, authorities motion, or political outcomes on platforms engaged in interstate commerce,” Jake Sherman, founder of Punchbowl News, defined.
The invoice goals to increase moral frameworks just like the STOCK Act to the decentralized betting economy.
If handed, it will ban authorities personnel from utilizing materials personal info on federal enforcement, court docket rulings, or international coverage for private achieve.
Essentially, the measure goals to guard the integrity of markets that depend on the knowledge of the crowd.
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