Congress eyes ban on crypto prediction markets

A recent investigation by Bubblemaps has uncovered highly accurate bets on Polymarket concerning U.S. military actions, raising national security concerns. Analysts found 80 bets with a 98% win rate, which they argue is statistically impossible to achieve through luck alone. This precision suggests potential insider trading, as adversaries could exploit such information for intelligence and warfare planning. Lawmakers are now pushing for the DEATH BETS Act to ban war-related contracts, while Polymarket asserts its use of AI and blockchain forensics to detect suspicious activity, despite denying tolerance for insider trading. The findings highlight the growing risks associated with prediction markets in geopolitical contexts.