<2>OpenAI Fires an Employee For Prediction Market Insider Trading
<3>The Investigation and Termination
OpenAI has fired an employee following an investigation into their activity on prediction market platforms, including Polymarket. The employee, according to OpenAI CEO of Applications Fidji Simo, “used confidential OpenAI information in connection with external prediction markets (e.g. Polymarket).” This action was in direct violation of OpenAI’s policies, which prohibit employees from using confidential information for personal gain, including in prediction markets.
<3>The Suspicious Trades
Evidence suggests that this was not an isolated event. Polymarket runs on the Polygon blockchain network, so its trading ledger is pseudonymous but traceable. According to an analysis by the financial data platform Unusual Whales, there have been clusters of activities, which the service flagged as suspicious, around OpenAI-themed events since March 2023. Unusual Whales flagged 77 positions in 60 wallet addresses as suspected insider trades, looking at the age of the account, trading history, and significance of investment, among other factors.
<3>The Patterns of Insider Trades
The behavior fits into patterns typical of insider trades. “The tell is the clustering. In the 40 hours before OpenAI