BlockBeats news: On January 6, Wintermute founder and CEO Evgeny Gaevoy expressed opposition to insider trading in prediction markets. He said it would be very regrettable if insider trading were normalized and subsequently framed as a feature rather than a flaw. He expressed strong disapproval of individuals engaging in insider trading on platforms like Polymarket or Kalshi.
The repost also mentioned that even if one merely senses a hint of non-public information, one should firmly refrain from trading in that market. Insider traders may escape punishment, or they may not, but taking such a risk is not worth it. Engaging in insider trading on Polymarket could land them in prison. It is extremely unethical to speculate when one knows the outcome is almost certain, as it exploits those who are unaware of the truth.