House Oversight Chair James Comer has sent letters to Crypto.com, Hyperliquid, and PredictIt demanding records on identity checks and suspicious-trade referrals. The request widens a probe into insider trading on prediction market platforms that started in May with Kalshi and Polymarket.
Rep. James Comer, chairman of the House Oversight Committee, is widening his probe into prediction market trading to three more platforms. He is now asking Crypto.com, Hyperliquid, and PredictIt for records on how they verify users and detect suspicious activity.
Letters target verification tools and referrals
In letters sent Tuesday, Comer asked the companies to detail the tools they use to flag trades that could involve nonpublic information. He also asked each to list referrals it made to regulators or law enforcement over the past two and a half years.
Each letter carried its own specific angle rather than a shared template. Comer asked Crypto.com whether employees at any of its affiliates traded on contracts tied to corporate decisions they knew about before the information became public, such as token listings or custody decisions. He also asked the exchange for records on any government officials who may have traded on contracts linked to crypto regulations or the exchange's own regulatory status.
Hyperliquid short position under scrutiny
The letter to Hyperliquid focuses on reports of a large leveraged short position placed before a major U.S. tariff announcement last October. Comer asked how the platform identifies account holders and what protocols it follows for referring suspicious trades to U.S. authorities.
PredictIt, owned by Aristotle Exchange, received a request for information on trades tied to elections, nominations, and other government actions involving current or former officials.
Comer points to a pattern of bad actors
Comer tied the requests to a broader concern about abuse on these platforms. According to Comer: "some bad actors have exploited the platforms to make thousands of dollars" by placing bets based on nonpublic information.
The Block reached out to Crypto.com, Hyperliquid, and PredictIt for comment but had not received a reply by the time of publication.
The latest letters extend a campaign Comer launched in May with requests to Kalshi and Polymarket. The committee says it has since received nearly 1,000 documents and multiple briefings from those companies' representatives. Comer said the goal is to assess the extent of insider trading and potentially enact legislation barring government officials from trading on prediction markets.
Source: House Oversight Committee
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