Apparently the paycheck isn't enough.
to place bets on their platforms, claiming that it serves as a “signal” in the noise. Turns out the companies from which that inside information is extracted are less thrilled with the idea. According to Wired, OpenAI has fired an employee who allegedly used internal knowledge about the company to place bets on prediction markets.
The employee was reportedly let go after an internal investigation found that they had “used confidential OpenAI information in connection with external prediction markets .” Employees were reminded that OpenAI prohibits them from “using confidential OpenAI information for personal gain, including in prediction markets,” Wired cited data from financial data platform Unusual Whales, which showed a surge of bets on OpenAI-related topics placed on prediction markets over the last few years. The platform reportedly flagged 60 different wallets with 77 positions that suggested they came from someone who had knowledge that likely came from inside OpenAI’s walls. Those included bets on the release date of Sora, GPT-5, and other products.last year. Per Unusual Whales’ data, 13 wallets with zero activity were opened, signed up for prediction markets, and collectively bet $309,486 on the product’s launch date. All of them were opened within 40 hours of the public unveiling. Insider trading has become a real challenge for prediction markets, which initially indicated they would welcome such informed positions. Last year, Polymarket CEO Shayne Coplan, “I think what is cool about Polymarket is that it creates this financial incentive to divulge information to the market.” When asked about markets relying on people trading on insider information during anBut in recent weeks, a crackdown on such trades has started—outside and inside the platforms. Last month, the Israeli governmentaccused of using privileged military information to profit on prediction markets. Earlier this week, prediction market Kalshi banned two people accused of insider trading, including a video editor for MrBeast and a former gubernatorial candidate in California. The company said in aThat’s a new angle from the industry, though maybe a necessary turn. Inviting insider knowledge might be good for the platform in the short term, but it risks fucking up the bag as these platforms try to lock down corporate partners. There’s likely more money in that than in completely unregulated degeneracy.7:30 am
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
MrBeast Employee Fined and Suspended by Kalshi for Insider TradingPrediction market Kalshi has fined and suspended an employee of YouTuber MrBeast for insider trading related to bets on MrBeast's videos. The platform also banned a gubernatorial candidate for wagering on his own election. The actions underscore the growing scrutiny and regulatory challenges within the burgeoning prediction market industry.
Read more »
Kalshi boots a US politician off the platform for insider tradingThe most recent news about crypto industry at Cointelegraph. Latest news about bitcoin, ethereum, blockchain, mining, cryptocurrency prices and more
Read more »
The Protocol: Blockchain sleuth ZachXBT alleges Axiom employee conducted insider tradingAlso: Ethereum’s “strawmap”, Robinhood chain update and OpenAI + smart contracts
Read more »
ZachXBT alleges Axiom employee conducted insider tradingZachXBT.alleges a senior Axiom employee used internal dashboards to access private wallet data and track traders’ activity, raising questions about potential insider trading.
Read more »
Leaked Call, Private Wallets, $200K Plan: Inside the Axiom Insider Trading AllegationsA senior Axiom staffer allegedly accessed sensitive user data, shared private wallet screenshots, and coordinated targeted trading strategies.
Read more »
Insider Trading Allegations Are Yet Another Example of Crypto Being No Different From Wall StreetCrypto is crashing but the outlook for insider trading scams is bullish.
Read more »