Key Insights
- Crypto regulation scrutiny expands to Hyperliquid, Crypto.com, and PredictIt, with records due October 13.
- Comer questions a $1.1 billion Hyperliquid short reportedly yielding more than $150 million.
- Kalshi and Polymarket have supplied nearly 1,000 documents and five briefings to the committee.
US House Oversight Chairman James Comer expands an insider trading investigation covering prediction markets and crypto regulation. His September 29 letters seek records from Hyperliquid Labs, Crypto.com, and Aristotle Exchange, which operates PredictIt.
He gives the companies until October 13 to explain their platforms’ existing customer verification and suspicious trading controls.
Lawmakers want detailed documents showing how the platforms detect trades involving confidential information and refer possible misconduct to authorities. Their requests cover records dating back to January 1, 2024.
Comer also seeks additional information on geographic restrictions and traders with government connections. Separate committee inquiries into Kalshi and Polymarket continue.
Crypto Regulation Inquiry Builds on Earlier Market Probes
Comer launched the investigation in May 2026 to assess safeguards against trading based on nonpublic or classified government information. His committee has since received nearly 1,000 documents and five briefings from representatives of Kalshi and Polymarket.
The latest crypto regulation requests extend that review to more companies offering access to prediction markets.
Letters cite an April 24 federal indictment involving U.S. Army Master Sergeant Gannon Ken Van Dyke. Prosecutors allege he used classified details about Operation Absolute Resolve to place Polymarket wagers.
That military operation resulted in the capture of Venezuelan President Nicolas Maduro. The indictment alleges that those bets generated more than $409,000 in personal financial gain.
Van Dyke has pleaded not guilty. Comer says the committee wants to establish whether platforms meet their legal obligations and prevent insider trading.
His crypto regulation inquiry focuses on access to information held by government employees, contractors, and other insiders. Comer says congressional action may follow the committee’s review of trading safeguards.
Hyperliquid Trade Timing Prompts Questions About User Checks
Comer addresses the Hyperliquid letter to co-founder Jeff Yan, citing research on a $1.1 billion leveraged short. The position involved Bitcoin and Ether perpetual contracts, which are crypto derivatives rather than prediction-market event contracts.
The cited analysis places its opening about 30 hours before an October 2025 presidential tariff announcement.
According to that research, the trader closed the position shortly afterward, earning more than $150 million. His letter questions the timing but does not establish that the trader had advance knowledge.
Comer asks whether Hyperliquid can identify account holders and refer suspicious transactions to U.S. law enforcement.
His crypto regulation inquiry requests customer verification policies, surveillance thresholds, and records of previously flagged accounts. Lawmakers also seek records from prediction markets involving Federal Reserve decisions, elections, and geopolitical outcomes.
Another request covers personnel who hold or have applied for U.S. government security clearances. The letter also asks how Hyperliquid collects, stores, and uses customer data.
Crypto Regulation Review Covers Staff Bets and PredictIt
Crypto.com receives a separate request examining differences between its international exchange and Crypto.com Derivatives North America. Comer asks CEO Kris Marszalek for records on employees trading event contracts tied to confidential corporate decisions.
Those decisions include token listings, delistings, liquidity arrangements, and custody matters. His letter also seeks records of suspected attempts to bypass geographic restrictions.
This part of the crypto regulation review also covers government officials trading contracts linked to cryptocurrency regulatory outcomes. Lawmakers request information barriers for staff learning about pending government action through legal, compliance, or government affairs teams.
They also seek records concerning compliance with Commodity Futures Trading Commission requirements.
Aristotle Exchange faces questions about customer verification and political-event trading on PredictIt prediction markets.
The crypto regulation investigation also examines the removal of PredictIt’s per-contract trader limit under CFTC Letter 25-20. Lawmakers ask whether that change affected liquidity, trading scale, or insider trading detection. Comer requests a staff-level briefing from PredictIt, according to the Aristotle Exchange request.
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Glory Kaburu 