Ryan Knudson

A lawyer for one of the reservists said in a statement that there were defects in the indictment and improper conduct by the investigative authorities.

What kind of questions does it raise if this can happen?

Polymarket in particular has pushed this idea.

The company's CEO, Shane Copeland, has described his platform as a quote, global truth machine.

So this type of betting is happening, but is it even legal?

That's next.

On Wall Street, insider trading — the use of non-public information to make bets on the stock market — is a big no-no.

It's a felony and can lead to fines or prison time.

The reason it's illegal is, in large part, because it's not a fair marketplace if someone knows the outcome in advance.

Technically, insider trading is also prohibited on prediction markets, which are regulated by the CFTC, the Commodity Futures Trading Commission.

But those CFTC rules were designed for things like wheat and copper futures, and they don't readily carry over to prediction markets.

Making matters more complicated is the fact that some state governments have tried to say that calci and polymarket need to follow state gambling rules, something that companies disagree with.

As a result, CalSheet and PolyMarket have been operating in something of a gray area, and the two companies have been navigating that in different ways.

For instance, a lot of the more out-there bets on PolyMarket are actually not allowed on the US version of its site.

A spokeswoman for Polymarket didn't comment on U.S.

customers using VPNs to place bets.

The other platform, Kalshi, has taken a different approach.

It's legal and regulated in the U.S., and CEO Tarek Mansour says insider trading is banned on the platform.

Right, so they could potentially see, oh, these bets that you're making may actually be something that you work in or would have inside knowledge of.

Mansour also said that new customers go through a vetting process, and that once on the platform, there are surveillance teams that track trading behavior, among other efforts, to police for insider trading.