White House staffers have been warned against placing bets on the outcome of global events, according to a new report.
U.S. government officials came under scrutiny in recent months after brand new accounts on prediction platforms made a fortune from far too accurate “guesses” about world events, such as the capture of Venezuelan leader Nicolas Maduro and when the U.S. would start bombing Iran, reports The Wall Street Journal.
Prediction market apps Kalshi and Polymarket have exploded in popularity in recent years. The apps allow users to place “predictions” on everything from sports to geopolitical events. The apps are not subject to stringent U.S. gambling laws, as owners claim their platform is more akin to investing than gambling.
White House spokesperson Davis Ingle confirmed the warning to staffers, telling The WSJ, “President Trump has been crystal clear. While he seeks a strong and profitable stock market for everyone, members of Congress and other government officials should be prohibited from using nonpublic information for financial benefit.”
Despite the warning from the White House Management Office to staffers occurring on March 24th, more than 50 new Polymarket accounts were made minutes before the Iran ceasefire, with three of them raking in more than $600,000 by accurately predicting the timing of Trump’s recent Iran war cease-fire.
This prompted new allegations from critics of insider trading occurring within the White House. Polymarket bets cannot be traced, as all trades on the app are made in cryptocurrency.
Democratic Senator Richard Blumenthal has already slammed the alleged use of prediction markets in relation to the ongoing conflicts.
The Connecticut lawmaker said the markets had turned war “into a casino game, and creating a market for national security risks.”
Blumenthal, alongside New Jersey Democrat Andy Kim, introduced legislation to ban the use of prediction markets and military events. “Corruption and exploitation are thriving right now within the gaps and loopholes of prediction markets,” Kim was quoted as saying when the legislation was announced.
White House press secretary Karoline Leavitt also raised eyebrows about suspicious bets in January after thousands of dollars were placed on whether her press conference would run over 65 minutes. She appeared to end the conference abruptly right before the 65-minute mark.
Members of Congress, including Nancy Pelosi, have been criticized in the past for investments made while in office. Now, it appears that prediction markets are making it even easier for insiders to cash in on secrets without disclosing their identities.
