Both insider trading cases in the prediction market were actively reported by Polymarket

Recently, the U.S. Department of Justice sued Google software engineer Michele Spagnuolo, accusing him of using confidential internal information from Google to engage in prediction market trading on Polymarket, illegally profiting approximately $1.2 million.

Polymarket stated on the X platform that Michele Spagnuolo's insider trading behavior had long been flagged by its market integrity system, and Polymarket proactively reported the case to law enforcement, ultimately leading to Michele Spagnuolo's successful arrest. Polymarket claimed that the two insider trading cases involving arrests in the prediction market currently stem from the platform's criminal reports.

Another individual arrested by the U.S. Department of Justice for insider trading in the prediction market is Gannon Ken Van Dyke, who, as a participant in the Maduro capture operation, relied on insider information to profit over $409,000 in the prediction market, and he was arrested on April 23.