CFTC’s top enforcer puts prediction market insider traders on notice

“There’s a myth in mainstream media and social media that insider trading doesn’t apply in the prediction markets … That is wrong,” said CFTC enforcement director David Miller.

The US commodities regulator’s chief enforcement director sent a cautionary message to prediction market insider traders on Tuesday, vowing that violators will face enforcement action.

“We are aware of the speculation about insider trading,” CFTC enforcement director David Miller said at a panel at New York University on Tuesday. “We are watching.”

Miller, a former federal prosecutor who was appointed to the position on March 2, said the Commission will use its prosecutorial discretion and will not dedicate resources to “trivial” cases.

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