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ARTICLE · 28 MAY 2026

Keeping Tabs: CFTC And DOJ Charge Software Engineer With Insider Trading For Prediction Market Trades

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The DOJ and CFTC have filed their first cases alleging insider trading in prediction markets based on misappropriated confidential commercial information, charging a software engineer who allegedly used non-public company data to profit from event contracts. These prosecutions expand beyond classified information cases and raise important questions about cross-border jurisdiction, the scope of confidential information protections, and the CFTC's authority over overseas prediction markets.

GlobalFinance and Banking
Christian Kemnitz
Christian Kemnitz
Carl E. Kennedy
Carl E. Kennedy
Matthew Kluchenek
Matthew Kluchenek
Brian Poronsky
Brian Poronsky
Zachary Schmitz
Zachary Schmitz
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Following on the heels of the highly publicized first criminal and civil case charging insider trading in prediction markets, the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) filed the first cases alleging insider trading in prediction markets based on the improper use of confidential commercial information. The May 27 complaints allege that a software engineer for a major internet search provider (the Company) misappropriated confidential information from his employer to place numerous profitable trades in event contracts.

The Alleged Scheme

The complaints allege that the employee made multiple trades in event contracts related to whether certain individuals would appear on the Company’s Year in Search list for 2025. Shortly after those contracts were launched, the employee accessed an internal software tool to obtain information about the non-public Year in Search results. The complaints allege the information was valuable to the Company

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