Polymarket

Summary Prediction market platform Polymarket was found to have a critical price manipulation vulnerability: traders could exploit a five-second window to artificially push prices and extract millions in profits. After months of public warnings from onchain analysts, Polymarket is moving to implement time-weighted average prices. Details According to CoinDesk, the vulnerability stems from Polymarket’s pricing mechanism being too reliant on instantaneous prices, allowing attackers to profit by manipulating prices in extremely short time windows. Onchain security analysts discovered and publicly warned about this issue months ago, but the platform had not taken effective action until now. ...

Crypto prediction market platform Polymarket is seeking a new funding round at a $20 billion valuation, reflecting intensifying competition in the sector after explosive growth.

House Oversight Chairman Comer has launched an investigation into insider trading on prediction market platforms Kalshi and Polymarket, sending letters to both CEOs with a deadline to respond by June. The move follows India’s recent crackdown on Polymarket. Prediction markets, as an emerging financial instrument, operate in a regulatory gray area. The probe will examine whether trades exploiting non-public information have occurred, whether platforms have adequate monitoring mechanisms to detect and prevent insider trading, and whether prediction markets should fall under CFTC oversight. ...

Indian regulators have cracked down on prediction markets, with Polymarket ceasing operations in the country. CoinDesk reports that other platforms like Kalshi could face similar restrictions. The move reflects a tightening regulatory trend for prediction markets globally. Meanwhile, Polymarket is eyeing entry into the Japanese market and has appointed a regional representative.

US Army officer Gannon Ken Van Dyke is charged with using classified information to bet on Venezuelan President Maduro’s capture on the crypto-powered prediction market Polymarket, winning over $400,000. He pleaded not guilty in New York federal court on Tuesday.