OpenAI Fires Employee Over Insider Trading on Prediction Markets
OpenAI has terminated an employee for engaging in insider trading on prediction markets, including Polymarket, as confirmed by the company to Wired. The employee allegedly used confidential OpenAI information to make trades.
The company did not disclose the identity of the employee but stated that such actions violated their policy prohibiting the use of insider information for personal gain, especially on prediction markets.
Prediction markets, such as Polymarket and Kalshi, allow individuals to place bets on the outcomes of real-world events. These events range from product announcements to company IPOs, offering the potential for significant financial gains. Recently, a Kalshi user won $470,300 by betting against DOGE believers.
Despite their gambling-like nature, prediction markets classify themselves as financial platforms. Kalshi, for example, is a regulated exchange that imposed fines and bans on individuals accused of insider trading. OpenAI has yet to provide further comments on the matter.
