Bobby Allyn

So directly profiting on insider information that he had.

And this person was banned from the app and was fined.

And it was all done by Koushi itself, right?

It wasn't done by the federal government, by some kind of regulator.

And that's because the way the Trump administration sees this industry is that it could kind of police itself, that they're going to lean on self-regulation.

They have all sorts of surveillance tools and a staff of people who are monitoring markets for anomalous trades.

Like, you know, if you see someone who, you know, 99% of the time correctly guesses what Google is going to announce before they announce, that's probably someone with insider information.

It just looks suspiciously good, right?

And another incident that captured a lot of headlines was around Nicolas Maduro's capture, right?

Somebody bet well before it was publicly known that the Trump administration had a plan afoot.

Somebody put down $32,000 that this was going to happen, which looked like a completely ridiculous bet in the moment.

But then when the, you know, the Maduro operation happened, that bet turned into a $400,000 payday

on polymarket.

And that started all sorts of conversations like, are there other members of militaries who are using classified information to make money on prediction markets?

What can be done about it?

You know, what does this signal to the enemy, right?

That if there's a bet that some kind of strike is going to happen, you're basically putting the target of that strike on notice.

So there's not just the, you know, the ethical questions, but there's the concern that this could put lives at danger.

Right.

Well, when Kalshi first entered the scene, they were able to list markets on really niche specialized questions like what will the Fed's interest rate be in three months?