House Oversight Committee Chairman James Comer has broadened a congressional investigation into potential insider trading on prediction markets by requesting records from three additional platforms. Letters sent Tuesday to the chief executives of Hyperliquid Labs, Crypto.com and Aristotle Exchange Inc., which operates PredictIt, seek details on customer identity verification and systems designed to detect and report trades that may rely on nonpublic information.

The expansion builds on an inquiry launched in May into Kalshi and Polymarket. That earlier review has produced nearly 1,000 documents and multiple briefings as lawmakers examine whether operators meet legal obligations and prevent trading based on confidential government or corporate information.

Scope of the Document Requests

The letters ask each company for information on know-your-customer procedures, technologies used to confirm account holders’ identities and geographic locations, and any changes to those processes since early 2025. Officials also requested records on internal monitoring tools, criteria for flagging anomalous trading patterns, and procedures for referring suspicious activity to U.S. regulators or law enforcement over the past two and a half years.

Comer stated that online prediction platforms have grown more mainstream, creating opportunities for some users to place bets based on nonpublic information and profit substantially. The committee is assessing whether the venues take sufficient steps to identify and stop such activity in advance.

Specific Focus on Hyperliquid Trade

In the letter to Hyperliquid Labs CEO Jeff Yan, Comer cited reports of a substantial leveraged short position established on the platform shortly before a presidential announcement concerning U.S. tariff policy in October 2025. The policy decision was not publicly known when the position was opened. Comer described the timing as precisely aligned with a nonpublic government decision and noted questions about the platform’s identity verification and ability to refer parties to U.S. authorities.

Public reports indicated a trader opened large leveraged short positions in Bitcoin and Ether roughly 30 hours before President Donald Trump announced 100 percent tariffs on Chinese imports, later closing them for profits reported in the range of $150 million to approximately $192 million. The committee has not established that the trader possessed nonpublic information but included the episode among the matters under review.

Questions Directed at Crypto.com and PredictIt

Crypto.com received requests covering its international platform and U.S. derivatives operations. Officials sought details on employee trading related to corporate decisions such as token listings or custody arrangements that may have been known internally before becoming public. The letter also inquired about contracts linked to crypto regulations or the firm’s own regulatory status and any internal restrictions preventing staff with confidential information from trading related event contracts.

For Aristotle Exchange and PredictIt, the committee requested information on trades connected to elections, nominations, confirmations, legislative actions and other government matters involving current or former officials. PredictIt operates political prediction markets under a separate regulatory framework, and the inquiry covers its identity verification practices and controls against anomalous activity.

Broader Context of the Investigation

Prediction markets allow users to trade contracts tied to outcomes of elections, sports, geopolitical developments and economic announcements. The committee’s work examines whether these platforms can adequately prevent trading that draws on confidential information ahead of major public disclosures.

Earlier cases referenced in the broader probe include a U.S. soldier who allegedly earned about $400,000 on Polymarket related to the fate of former Venezuelan leader Nicolás Maduro, and the permanent ban and fine imposed on former Representative George Santos after bets on Kalshi concerning his attendance at the State of the Union address.

The latest requests extend scrutiny beyond dedicated prediction markets to include crypto-linked trading venues. Responses are expected to help determine the adequacy of existing safeguards and whether additional oversight is warranted as these platforms continue to attract wider participation.