OpenAI Fires Employee Over Prediction Market Insider Trading
Feb 28th 2026
OpenAI confirmed it fired an employee after an internal probe found they used confidential company information to trade on prediction markets like Polymarket, and analysts have flagged dozens of suspicious trades tied to OpenAI events suggesting broader insider trading risks.
- OpenAI fired an employee for using confidential company information to trade on prediction markets, CEO Fidji Simo said in an internal message.
- A company spokesperson said OpenAI policies forbid using confidential information for personal gain on external prediction markets.
- Financial data firm Unusual Whales flagged 77 positions across 60 wallet addresses as suspected insider trades tied to OpenAI events.
- Suspicious activity centered on product timing and personnel events, including bets linked to Sora, GPT-5, the ChatGPT Browser, and CEO Sam Altman’s employment status.
- In one example, a new wallet bet on Altman returning two days after his ouster and later realized over $16,000 in profit.
- Before the ChatGPT Browser launch, 13 brand-new wallets collectively placed $309,486 on the same outcome, a pattern analysts say is typical of insider trading.
- Prediction markets have grown rapidly, and platforms and regulators are increasingly investigating and reporting suspected insider trades to authorities such as the CFTC.