After a recent alleged incident of insider trading on Polymarket about the capture of Venezuelan leader Nicolás Maduro, President Donald Trump made comments on Wednesday that the insider was arrested.
A bettor on Polymarket won more than $400,000 on a $30,000 wager on the capture of the Venezuelan strongman before Jan. 31. The wager brought allegations of insider trading and Trump now believes the person responsible is in custody.
“The leaker has been found, and is in jail right now — and that’s the leaker on Venezuela … and will probably be in jail for a long time,” the president said. “Let’s see what happens.”
Home of Washington Post Reporter Searched
While it appears Trump was referring to the Polymarket wager, it’s not exactly certain. The FBI executed a search warrant at the Virginia home of Washington Post reporter Hannah Natanson on Wednesday.
Investigators told Natanson the search was in relation to an investigation of Aurelio Perez-Lugones. The government contractor was charged in federal court last week for unlawful retention of national defense information.
During the search, FBI agents seized a phone, two laptop computers, and a Garmin watch, according to the Post. The Justice Department told ABC News the suspect was revealing classified information to the reporter and that a search of his home also revealed classified documents involving national defense.
That allegedly included top secret information involving a foreign country. Investigators said Natanson isn’t the focus of the investigation.
“[A]t the request of the Department of War, the Department of Justice and FBI executed a search warrant at the home of a Washington Post journalist who was obtaining and reporting classified and illegally leaked information from a Pentagon contractor,” Attorney General Pam Bondi posted on X. “The leaker is currently behind bars.”
Prediction Markets Face Scrutiny
The news comes as prediction markets face more scrutiny. Rep. Ritchie Torres, D-NY, has proposed the Public Integrity in Financial Prediction Markets Act of 2026.
The bill prohibits federal elected officials, political appointees, executive branch employees, and congressional staff from buying, selling, or exchanging prediction market contracts tied to government policy when they possess “material nonpublic information or could reasonably obtain such information through their official duties.”
NCAA President Charlie Baker also announced on Wednesday that the association is asking the Commodity Futures Trading Commission, which oversees prediction markets, to pause all college sport offerings on the platforms until the agency implements appropriate regulations.
“Just as we need Congress to stabilize eligibility, we need federal regulators to stabilize these markets,” Baker said. “The answer cannot be the status quo. We need one set of fair, transparent standards.”
Growing Concerns About Prediction Markets
This isn’t the first time Polymarket betting has brought suspicion of insider trading. A similar incident occurred in December.
A user won 22 of 23 bets on the platform for more than $1 million in a single day. Yahoo Finance reported that the company’s terms of service don’t cover insider trading.
Operators have also faced increased scrutiny from state gaming regulators. Lawmakers in D.C. recently circulated a draft letter criticizing the industry and pointing to a lack of consumer protections.
