An individual earned a substantial sum by predicting the removal of the Venezuelan leader shortly prior to it was officially announced, leading to inquiries about whether someone profited from non-public details of American actions.
Bets placed on the crypto-platform, a blockchain-based service, that the leader would be out of power by the month's conclusion rose in the period preceding President Donald Trump stated on the weekend that the president had been taken into custody.
A particular user, which became a member last month and took four positions, all on political events in Venezuela, profited a total of $nearly half a million from a starting bet of $32.5K.
It remains unclear. The anonymous account had only a string of letters and numbers for identification.
Trading information shows that traders put the odds of the president's removal at just 6.5% in the afternoon of Friday, January 2nd.
But the market's assessment had increased to 11% by shortly before midnight and skyrocketed in the first hours of January 3rd, suggesting a sudden change in positions just before the public announcement was made.
"That trade has all the signs of a trade based on non-public details," said an industry expert.
Several of other individuals also profited significant sums from similar wagers.
Some lawmakers are growing concerned.
A bill put forward on Monday would prevent public officials from making trades on prediction markets if they have "material nonpublic information" related to a bet.
Prediction markets have surged in popularity in the United States, with traders able to bet on everything from sports to current affairs.
The industry encountered regulatory challenges under the last presidential term. However it has experienced less resistance during the current presidency.
Insider trading is illegal in the traditional financial markets, but there are more ambiguous rules in the event betting space.
A company executive for a competing service said their site "explicitly prohibits trading on insider information of any form."
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