OpenAI Fires Employee for Insider Trading on Polymarket
OpenAI caught an employee betting on prediction markets using insider knowledge, and the problem may be much bigger.
OpenAI axed an employee for placing insider trades on prediction markets like Polymarket. The worker apparently used confidential knowledge of upcoming company events to make bets — essentially turning corporate secrets into cash.
It's not an isolated incident. Unusual Whales, a trading analytics firm, has flagged 77 suspected insider trades tied to OpenAI events. Seventy-seven.
Prediction markets like Polymarket and Kalshi have exploded into big business. That growth has created a tempting gray zone for Big Tech employees sitting on non-public information. Some are clearly testing the boundaries — and getting caught.
The firings signal that companies are starting to take the threat seriously. But with prediction markets surging in popularity and enforcement still catching up, the insider trading problem in tech is likely far from over.