Entries by Matthew Podolsky

12 06 '26

Prediction Market “Insider Trading” Revisited: Technology Employee Charged With Using Confidential Corporate Information to Profit from Event Contracts

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On May 27, 2026, the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and the Commodity Futures Trading Commission(“CFTC”) charged a Google software engineer with allegedly using confidential internal search data to profit from prediction market contracts on Polymarket. The case is the latest example of regulators applying insider trading-style theories outside traditional securities markets and raises important questions regarding confidential business information, prediction markets, and the scope of the CFTC’s enforcement authority.

For companies, the matter underscores increasing scrutiny of trading activity involving confidential corporate information and the need to assess whether existing insider trading and confidentiality policies adequately address emerging trading platforms.

Read the full blog post for an analysis of the allegations, the implications of United States v. Chastain, and key compliance considerations for companies navigating the rapidly evolving prediction market landscape.

11 06 '26

SDNY Signals Increased Scrutiny of Private Market Valuations

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In remarks delivered at the Bloomberg Global Credit Forum on June 3, 2026, Jay Clayton, the U.S. Attorney for the Southern District of New York (“SDNY”), signaled increased scrutiny of private-market valuations. While emphasizing the importance of private credit to the U.S. economy, Clayton identified inconsistent asset valuations as a key area of concern and called for greater transparency around firms’ valuation practices. He specifically noted that significant discrepancies in the valuation of the same assets may raise concerns, particularly where valuations affect fee generation.

Clayton further stated that he has directed SDNY prosecutors to examine valuation discrepancies and outlier marks when assessing cases. This focus may represent a shift from the private-credit cases currently pursued by SDNY, which have largely centered on borrower-side fraud, and suggests increased attention on the conduct of lenders, asset managers, and investors.

Our blog post examines what Clayton’s comments may signal about future enforcement priorities, the types of valuation-related conduct likely to draw scrutiny, and practical steps firms can take to strengthen their valuation frameworks.

08 06 '26

Prediction Markets and Insider Trading: Why Organizations Should Update Compliance Policies Now

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As prediction markets expand to cover corporate, regulatory, and geopolitical events, organizations face new compliance risks when employees, directors, or other insiders possess nonpublic information that could affect the value of event contracts.

In this post, we examine the first insider trading case involving prediction markets, discuss the government’s position that existing insider trading and antifraud principles apply to these markets, and outline practical steps organizations can take to strengthen their governance frameworks. We also explore why existing insider trading, confidentiality, and code of conduct policies may be insufficient and provide recommendations for updating policies, training, and compliance controls to address this emerging risk area.

Read our analysis of the evolving regulatory landscape and the measures organizations should consider to mitigate legal, reputational, and compliance risks associated with prediction market activity.

08 05 '26

The First Prediction Market Insider Trading Case: SDNY and CFTC Test the Limits of Fraud and Commodities Law

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On April 23, 2026, the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and the Commodity Futures Trading Commission (“CFTC”) announced parallel criminal and civil actions against a U.S. Army service member accused of using classified military information about a planned operation to capture Venezuelan President Nicolás Maduro to place profitable trades on Polymarket, a prediction market platform. The case, the first to apply traditional insider trading and fraud theories to prediction markets, signals a shift in how the government will regulate this emerging market.  In response to this news, companies should consider reviewing company policies on insider trading and compliance to address prediction markets and the use of confidential information in connection with event-based trading.

22 04 '26

Evolving AML/CFT Expectations and Enforcement Priorities as FinCEN Releases FY 2025 Year in Review

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On April 16, 2026, the Financial Crimes Enforcement Network (“FinCEN”) released its Year in Review for Fiscal Year 2025 (the “FY 2025 Report”). The report provides a concise overview of recent regulatory and enforcement developments in the financial crimes space and offers insight into FinCEN’s evolving priorities.

FinCEN highlights several key accomplishments over the past year, including reporting $10 billion in savings attributed to deregulatory efforts, enhancing the management and sharing of Bank Secrecy Act (“BSA”) data with law enforcement, and expanding engagement with private-sector stakeholders on anti-money laundering and countering the financing of terrorism (“AML/CFT”) issues.