SvmuuNews: The US Department of Justice recently prosecuted Google software engineer Michele Spagnuolo, accusing him of using confidential internal Google information to trade on Polymarket's prediction market, illegally profiting approximately $1.2 million.
Polymarket posted on X platform, stating that Michele Spagnuolo's insider trading activities were flagged by its market integrity system early on, and that Polymarket proactively filed a criminal report with judicial authorities, ultimately leading to Michele Spagnuolo's successful arrest. Polymarket claims that the two insider trading arrests on prediction markets so far both originated from criminal reports filed by the platform itself.
The other insider trader arrested by the US Department of Justice for prediction market crimes is Gannon Ken Van Dyke. As a US military participant in the capture operation of Maduro, he used insider information to profit over $409,000 from the prediction market. He was arrested on April 23.