A U.S. servicemember is under federal investigation for using classified military intel to profit from Polymarket wagers involving Iran and Venezuela. Federal authorities allege the individual made more than $1 million on the bets, creating one of the first legal tests of whether prediction market activity can be prosecuted as insider trading.

Authorities are also investigating a KPMG employee for wagering on whether public companies would beat quarterly earnings estimates. These probes are part of a wider series of insider trading cases, and charges in both matters could come this fall.