Comer asks Crypto.com, Hyperliquid and PredictIt for records on insider trading checks

Probe expands to three trading platforms

House Oversight Committee Chairman James Comer is asking Crypto.com, Hyperliquid and PredictIt for records about how they verify users and spot suspicious trades.

Crypto.com is a crypto exchange. Hyperliquid is a crypto trading platform. PredictIt is a prediction market platform, where users bet on future events such as elections or government decisions.

Key points

• Comer sent letters asking the companies to provide details on tools they use to flag trades that may involve nonpublic information.
• The letters ask for referrals made to regulators or law enforcement over the past two and a half years.
• Crypto.com was asked whether employees of its affiliates traded on contracts tied to corporate decisions they knew about before those decisions became public, such as token listings or custody decisions.
• Hyperliquid was asked about reports of a large leveraged short position placed before a major U.S. tariff announcement last October.
• PredictIt was asked about trades tied to elections, nominations and other government actions involving current or former officials.

What the House Oversight release says

In a statement, Comer said: "As online prediction platforms grow and become more mainstream, some bad actors have exploited the platforms to make thousands of dollars by placing bets based on nonpublic information."

What is confirmed

The letters were sent as part of a probe that began in May, when Comer wrote to prediction market platforms Kalshi and Polymarket. The committee says it has received nearly 1,000 documents and multiple briefings from those companies' representatives.

The Block reached out to Crypto.com, Hyperliquid and PredictIt for comment but did not receive a reply by the time of publication.

What is still unclear

The committee has not said whether insider trading took place. It says the goal of the campaign is to assess the extent of insider trading.

The large Hyperliquid short position mentioned in the letter is described in the source as a report, not as a confirmed fact.

Why this matters

Comer said the goal is to assess the extent of insider trading and potentially enact legislation that would bar prediction market trading by government officials.

Sources

• The Block

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