Wall Street insider trading investigation over 2.6 billion
The Department of Justice, alongside the Commodities Futures Trading Commission (Cftc), has launched investigations into at least four financial transactions, perfectly timed bets on sharp fluctuations in oil prices that netted over $2.6 billion
by Marco Valsania
From our correspondent
NEW YORK - After the controversy, investigations are underway in the US on suspicions ofinsider trading in the face of the conflict with Iran and energy shocks. The Department of Justice, together with the Commodities Futures Trading Commission (Cftc), has launched investigations into at least four financial transactions, perfectly timed bets on sharp fluctuations in oil prices that yielded more than $2.6 billion.
The spectre of illegal speculation, based on confidential information, had already stretched heavy shadows over the markets and Donald Trump's administration, characterised by deregulation races and cuts in supervision. The excesses of malfeasance may also have convinced the government to intervene more decisively.
Repeated suspicions had spread ahead of bets not on stocks and commodity futures, but on new so-called forecast markets, such as Polymarket, from Iran to Venezuela and tariffs. The White House recently issued an internal memo asking staff to avoid insider trading risks.
A US soldier involved in the planning and execution of the blitz in Venezuela that captured the country's leader Nicolas Maduro was indicted last month for making $400,000 on Polymarket on 2 January. Also on Polymarket, 150 separate bets had come in on the eve of the 28 February war with Iran, including bets on the killing of Tehran's leaders. Last year, stock bets had emerged just before breaks in Liberation Day tariffs.
