Wintermute CEO: Opposing insider trading in prediction markets, exploiting the interests of uninformed users is unethical

Founder and CEO of Wintermute, Evgeny Gaevoy, stated that he opposes insider trading in prediction markets. If insider trading becomes normalized, it will be glamorized as a feature rather than a flaw, which would be very unfortunate. He holds a strong disdain for those who engage in insider trading on platforms like Polymarket or Kalshi.

In a forwarded post, he also mentioned that even just sensing a whiff of non-public information should lead one to resolutely avoid trading in that market. Perhaps insider traders can escape punishment, or perhaps they cannot, but taking that risk is not worth it. Insider traders may find themselves in trouble for engaging in insider trading on Polymarket. Speculating when one knows they are guaranteed to profit is extremely unethical and exploits those who are unaware of the truth.