insider

According to Bloomberg, as prediction markets like Polymarket and Kalshi expand, the issue of betting using non-public information or informational advantages is receiving more scrutiny. Bloomberg Businessweek analyzed approximately 34,000 potential insider trading cases flagged by Polysights between August 2025 and June 2026; these related trades exhibited characteristics such as newly created accounts, low probability entries, large bets, or high trading concentration, but it cannot be determined that traders violated rules based on this.Data shows that from January 1 to June 30 of this year, the amount of suspicious trades flagged on Polymarket was approximately $200 million, with geopolitical and war-related markets driving a significant increase in abnormal trading volume. The profits from potential insider trading are highly concentrated, with the top 1% of accounts in profit wallets earning more than half of the gains, and 57% of related wallets created less than 24 hours before the trades. Some traders are reducing the likelihood of being discovered by using multiple associated wallets and splitting orders. For example, 38 associated addresses placed bets in 90 geopolitical markets related to Iran and Venezuela, achieving a win rate of 98%, with total profits of $1.6 million, and withdrew funds using the same Coinbase deposit address.Polymarket stated that it will monitor insider trading and other illegal activities, and has so far referred nearly 100 wallets to law enforcement agencies. Kalshi has also strengthened identity and employment information checks, and restricted participation in related markets by political candidates, athletes, and others who may influence outcomes.

In response to the recent market controversy regarding the reduction of Stabledrop shares, Cap founder Benjamin issued a statement of apology and provided a detailed response. He stated that the team prematurely committed to an airdrop scale of 11 million before the funding was fully secured, but subsequent changes in the market environment led to a fundraising amount that fell short of expectations, resulting in the actual airdrop pool shrinking to 4.2 million.To avoid substantial principal losses for early YT (Yield Token) holders, the team temporarily adjusted the originally planned linear distribution scheme to a "capital protection but no profit" restructuring model, ensuring that no one incurs losses. This rule applies equally to all wallets. Meanwhile, in response to community concerns about a related whale address allegedly engaging in "internal score manipulation," Benjamin clarified that the wallet belongs to a former colleague and is not operated by the team, and that project treasury funds have not been utilized. Additionally, he emphasized that the Cap protocol is still operating healthily, and the decline in TVL that occurred over the weekend was mainly due to the surge in USDM lending rates on Aave for MegaETH, causing arbitrageurs to exit, which is unrelated to this airdrop incident. All redemptions have been processed smoothly.

According to on-chain analyst Ai Yi (@ai_9684xtpa), a suspected insider address has transferred 10.5 million LAB to Aster again, valued at approximately 9.15 million dollars based on the transfer price of 0.872 dollars. This is the second time this address has transferred LAB in the same manner after about 22 hours.In the past 24 hours, this address has cumulatively transferred LAB worth approximately 18.69 million dollars to Aster. Previously, after completing the coin transfer last night, the LAB price experienced a significant drop.

According to on-chain analyst @ai_9684xtpa, a suspected LAB insider address transferred 7.99 million tokens to three new addresses on the Aster platform 11 hours ago. Just an hour and a half after the transfer, the LAB price plummeted from $1.21 to $0.8152, a drop of 34%.Previously, this address had transferred the same batch of tokens to three new addresses three hours ago, valued at approximately $9.24 million at that time, while three days ago this batch of tokens was worth as much as $141 million.Since July 6, LAB has crashed from $17.68 to $1.05, a cumulative drop of 94% over three days, with the coin price falling back to levels seen before the suspected manipulation started two months ago, leading the market to suspect that the speculators have entered a direct selling phase.

According to on-chain analyst Ai Yi's monitoring, LAB has dropped from $17.68 to $1.05, with the coin price returning to the level it was at when the intense manipulation began two months ago.Three hours ago, a suspected insider address transferred 7.99 million LAB to three new addresses, approximately $9.24 million. This portion of tokens was worth $141 million three days ago.

According to CNBC, as concerns about insider trading arise from prediction markets, Goldman Sachs has prohibited employees from trading contracts related to the bank's own events, elections, financial markets, macroeconomic data, and geopolitical issues. Financial institutions such as Morgan Stanley, JPMorgan Chase, and Bank of America are formulating or updating relevant policies, with Bank of America explicitly prohibiting certain behaviors related to prediction market trading for its employees.Previously, the CFTC and the Department of Justice charged a Google employee with profiting approximately $1.2 million by trading "annual search" related contracts on Polymarket using non-public information. Legal experts stated that the CFTC is "still a blank slate" in terms of insider trading enforcement, but the variety of contract types on the platform makes comprehensive regulation difficult. Kalshi and Polymarket have respectively launched employment verification tools and collaborated with Chainalysis and Palantir to monitor suspicious activities. Lawyers recommend that companies update their insider trading policies to cover event contracts, establish monitoring agreements, and even prohibit access to prediction markets on company devices.

Sources familiar with the work indicate that lawmakers may release a new version of the cryptocurrency Clarity Act as early as next week. The new version will integrate the work of the U.S. Senate Banking Committee and the Agriculture Committee, but there are still unresolved issues, including one of the key demands from Senate Democrats regarding ethical concerns.Democrats still need to approve the new draft, which requires 60 votes to advance in the Senate.

According to on-chain analyst @ai_9684xtpa, a suspected insider address built a position when the market cap of the Meme coin CZ was only about $150,000 and has now started to sell.According to on-chain data monitoring, the address 0xf34...fddee spent only $756.8 yesterday to buy 5.108 million CZ, with a purchase cost of about $0.0001481. Ten minutes ago, this address sold 25% of its holdings at a price of $0.06853, making a profit of about $87,000.Currently, this address has accumulated a profit of about $374,000, including unrealized gains, with a return rate as high as 49,421.1%.

According to informed sources, U.S. regulators are investigating allegations made by Susquehanna International Group. The allegations claim that unknown insider traders profited $100 million through options bets before recent regulatory crackdowns on cross-border brokers Futu and Tiger Brokers in China. Susquehanna publicly disclosed these allegations in a lawsuit filed on June 29 in Manhattan federal court. Sources indicate that the U.S. SEC is reviewing the trades described in the market maker's complaint.Susquehanna claims in the lawsuit that it lost over $70 million as the counterparty to most of the alleged insider trading. The lawsuit states that traders purchased U.S. exchange-traded options from Chinese securities firms, which subsequently became targets of the regulatory crackdown on May 22. The scope and stage of the SEC investigation remain unclear. A U.S. judge approved Susquehanna's request to freeze related accounts on June 29. The Chinese government stated that Futu and Tiger Brokers provided unlicensed trading services to mainland residents. Following the announcement on May 22, the stock prices of both companies fell. Futu was fined 1.85 billion yuan in regulatory penalties, and founder Leaf Li's wealth decreased by $1.7 billion in a single day.

Data shows that on October 11, insider whale Garrett Jin still holds a 5x leveraged long position of 1,270 BTC. This position was opened in May this year at a price of $76,117 and has been held for nearly 2 months. Currently, this trade has an unrealized loss of over $18.55 million, with a margin size of $15.6 million, and the liquidation price is temporarily reported at $16,964.

According to Yu Jin monitoring, "1011 Insider Whale" (Garrett Jin Whale Entity) has closed a small proportion of ZEC and UNI long positions. Among them, 50,000 ZEC long positions (approximately $22.38 million) were closed with a profit of about $420,000; 580,000 UNI long positions (approximately $1.76 million) were closed with a loss of about $310,000. However, this whale still holds a long position of 1,270 BTC opened at a price of $76,117 in May of this year, with a position value of approximately $80,000,000, and the current unrealized loss has expanded to about $16.65 million.

Insider whale Garret Jin today lost 5.08 million USD, with a total position value of 102.4 million USD, all in long positions. Among them, the Bitcoin long position is about 79.34 million USD, accounting for nearly 80% of the total position; additionally, he holds about 22.86 million USD in ZEC long and about 257,000 USD in UNI long. Currently, the BTC position has an unrealized loss of about 17.2 million USD, the ZEC position has an unrealized gain of about 893,000 USD, and the UNI position has an unrealized loss of about 47,300 USD. In the past 24 hours, this account's perpetual contracts lost about 5.0897 million USD, with total account assets of about 66.4465 million USD.

According to the Wall Street Journal, Kalshi plans to require some participants in the prediction market to disclose their employer identities. It is reported that users will need to submit an online form disclosing their workplace when placing bets in markets involving undisclosed significant information, and this change will be rolled out in the coming weeks. Sensitive betting markets involving company performance, national security, and other areas are expected to require the disclosure of employment information.The audit committee report reveals for the first time that Kalshi has submitted over 20 referral cases to the U.S. Commodity Futures Trading Commission and the Department of Justice in the first quarter of 2026. This year, individuals referred to federal authorities include former New York Congressman George Santos and accounts related to military spouses.

According to Onchain Lens monitoring, affected by the Orchard Pool vulnerability, ZEC has fallen below 400 dollars. The "1011 insider whale" Garrett Jin's 3x leveraged ZEC short position is currently up over 13.5 million dollars, while his 5x leveraged BTC long position is currently down over 17 million dollars.

According to a report by Barron's, on the eve of SpaceX's IPO, insiders at Rocket Lab concentrated on selling over 124,000 shares, cashing out more than $18.41 million in total. This includes the company's General Counsel Arjun Kampani, Vice President of Space Systems Brad Clevenger, COO Frank Klein, and Alex Slusky, head of the shell company behind the company's listing, Vector Capital.Previously, the company's stock price had surged significantly due to the optimistic sentiment in the industry brought about by the increase in SpaceX's valuation. This Monday, Rocket Lab (RKLB) saw its stock price drop by 15% to $122.39 at one point.

The "Anthropic" plan allows the EU's cybersecurity agency to use the powerful artificial intelligence tool "Mythos," which can discover and exploit vulnerabilities in computer systems.According to informed sources, Anthropic will allow the European Cybersecurity Agency to join the "Glass Wings" project. This project aims to let key institutions test the capabilities of "Mythos" before widespread deployment. A spokesperson for the European Commission stated that negotiations with Anthropic are progressing but declined to comment further.

According to Fortune, U.S. prosecutors this week charged Google software engineer Michele Spagnuolo (36 years old, Italian, currently residing in Switzerland) with insider trading.Prosecutors stated that under the username "AlphaRaccoon," he placed bets on the prediction market platform Polymarket using internal search trend data before the public release of Google's "2025 Search Annual" data, accumulating profits of over $1.2 million.The FBI identified him by tracking cryptocurrency payments. Google has suspended him and stated that using confidential information to place bets severely violates company policy.Spagnuolo is charged with violating the Commodity Exchange Act, telecommunications fraud, and money laundering, and could face years in prison.

Superfortune, incubated by Manta, recently released an update on the X platform regarding a security incident, stating that the attack was not carried out by internal personnel and that no team members were involved. The claim about the team secretly selling tokens is incorrect. The team has also not had any contact with Web3Port.The investigation confirmed that the attack was not due to address poisoning, but rather a leak of the signer's private key. The attacker independently held the private key and submitted a transaction with a forged address 43 minutes after the correct transaction. The forged address shares the first and last four characters with the correct address (starting with 0x70AE and ending with 5C15) to disguise itself in the Safe interface preview. The stolen funds are fully traceable and are currently stored in three cold wallets on Ethereum, containing approximately 2784 ETH, along with about 170,000 USDT that were cross-chain transferred out.The attacker also created a large number of counterfeit addresses and sent false transfer events to these addresses using Unicode-forged token symbols in an attempt to confuse tracking. This counterfeit address construction technique is the same as the method used when attacking this project. The attacker had pre-built a large-scale infrastructure, indicating that this was an industrialized operation rather than an opportunistic attack.

Insiders reveal that SpaceX, under Elon Musk, is currently seeking a valuation of at least $1.8 trillion in its initial public offering (IPO), lower than the previously reported $2 trillion. Insiders stated that SpaceX has adjusted its target after consulting with advisors and investors. Details such as the size and valuation of the IPO are typically adjusted based on stakeholder feedback before the final pricing. Reports indicate that SpaceX will officially launch its roadshow as early as June 4 and may complete pricing as soon as June 11, although the actual trading schedule may be delayed by several days.Related discussions are ongoing, and the company may further raise its target valuation based on investor feedback during the roadshow. According to the prospectus, SpaceX's revenue for 2025 is projected to be $18.7 billion, up from $14 billion the previous year. During the same period, the company's performance is expected to shift from a profit of $791 million in 2024 to a loss of $4.94 billion in 2025. The company announced in February this year the acquisition of xAI, which is also under Musk; this deal valued SpaceX at approximately $1 trillion, while xAI was valued at about $250 billion.

On-chain security analysis account Eye stated that the BNB Chain project launch platform DxSale is suspected of exploiting a hidden backdoor to siphon off funds from an old liquidity pool locked in 2021, involving over 1,400 LPs and an amount of approximately $7.3 million. The analysis indicates that this attack includes operations such as "silent ownership transfer" and over 80 wallet hops.After the LP was drained, the attack address received over 1,200 BNB (approximately $763,000), with the funds believed to come directly from multiple stolen LP pools. More concerning is that this address had previously been dormant for a long time but has a direct on-chain association with a wallet marked as related to the DxSale team; this address is also one of the important funding inflow addresses for the DxSale smart contract.Subsequently, the attack address transferred about 3,400 BNB (approximately $1.2 million) to multiple wallets and completed the fund transfer through several Binance deposit addresses. Eye stated that if the related accusations are true, it implies that the DxSale team may have reserved a backdoor for the platform years ago and ultimately carried out the attack themselves. They also called for Binance to freeze the related funds, believing that these assets essentially belong to the project investors who had previously financed through DxSale. DxSale was one of the most well-known launchpads and LP locking infrastructure on the BNB Chain, with projects like SAFEMOON having used its services.