"OpenAI has fired an employee over the employee's activity on prediction markets, including Polymarket, the company confirmed to Wired. The employee used confidential OpenAI information in connection with the trades made, the company alleges. OpenAI didn't release the name of the employee. However, a spokesperson said that such actions violated a company policy that bans workers from using inside information for personal gain, including on prediction markets."
"Prediction markets like Polymarket and Kalshi allow people to make wagers on the outcomes of real-world events. For instance, on Polymarket, there are wagers being made around the kind of products OpenAI will announce in 2026 and when the company will go public. They can cover any event, and some eye-popping money can be made."
"Prediction markets insist they are not gambling sites, preferring to label themselves as financial platforms. Kalshi is a regulated exchange and, in fact, it fined and banned a MrBeast editor for similar alleged insider trading earlier this week."
OpenAI terminated an employee for trading activity on prediction markets, specifically using confidential company information in violation of company policy prohibiting insider information use for personal gain. Prediction markets like Polymarket and Kalshi enable users to wager on real-world event outcomes, including OpenAI product announcements and IPO timing. These platforms classify themselves as financial instruments rather than gambling sites. Kalshi, a regulated exchange, recently fined and banned a MrBeast editor for similar insider trading allegations. The incident highlights growing concerns about information misuse in prediction market trading.
Read at TechCrunch
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