TLDR
- Senators Curtis and Schiff have formally requested the CFTC launch an investigation into Polymarket’s advertising practices
- WSJ analysis revealed approximately 70% of 1,105 promotional videos contained fabricated wagers worth nearly $1.9 million
- Sources indicate the CFTC already has an active investigation into the platform
- Consumer advocacy organization filed legal action against Polymarket for allegedly misleading college-age users
- The platform reached a settlement with the CFTC in 2022, paying $1.4 million in penalties
On Thursday, Representatives John Curtis (Republican) and Adam Schiff (Democrat) delivered a formal correspondence to CFTC Chairman Michael Selig, requesting a thorough examination of prediction market operator Polymarket.
The correspondence comes on the heels of a Wall Street Journal exposé released June 20, which revealed that Polymarket compensated content creators to record fabricated betting activities using mock-up versions of its platform.
The publication’s analysis examined 1,105 promotional videos produced by 10 different creators spanning December 2025 through mid-May 2026. Approximately 70% depicted betting activity. However, none of the displayed wagers—collectively valued at around $1.9 million—were authentic.
The congressional representatives characterized these practices as “deceptive marketing tactics to promote gambling-style products to US audiences.”
“If accurate, these allegations are deeply troubling and demand immediate scrutiny from the Commodity Futures Trading Commission,” they wrote.
Polymarket announced it is implementing a “comprehensive audit of active promotional content” to verify compliance with all regulatory and legal disclosure standards.
CFTC Investigation Already Underway
CNBC revealed Friday, referencing a source with direct knowledge, that the CFTC maintains an ongoing and comprehensive investigation into Polymarket’s operations. The regulatory body informed The Block it cannot publicly confirm or deny any investigative activities.
This represents Polymarket’s latest regulatory challenge. In 2022, the company reached a settlement with the CFTC regarding its provision of “event-based binary options” and remitted $1.4 million in penalties. The agreement also required the platform to restrict access for US-based users.
During 2024, federal agents confiscated Polymarket chief executive Shayne Coplan’s mobile device as part of a reported Department of Justice investigation concerning potential unauthorized US user participation.
Polymarket currently holds a $15 billion valuation, with the platform processing billions in trading volume monthly throughout the previous year.
Consumer Lawsuit Filed in DC Court
Friday saw the National Association of Consumer Advocates initiate legal proceedings against Polymarket in the Superior Court of the District of Columbia.
The organization contends the platform utilized influencers, including Logan Paul, to reach college-aged demographics through deceptive promotional materials that concealed the actual probability of financial losses.
Additionally, an insider trading incident has surfaced involving the platform. Military service member Gannon Ken Van Dyke, 38, faces charges for allegedly exploiting confidential intelligence to wager on Venezuelan President Nicolás Maduro’s potential removal, reportedly profiting over $400,000.
Senators Curtis and Schiff have requested Chairman Selig provide written responses by July 10, addressing specific questions about whether the CFTC is actively investigating Polymarket, the legality of the advertising campaigns, and whether the agency possesses adequate resources for prediction market oversight.
The CFTC continues deliberating with state regulators regarding jurisdictional authority over sports-related event contracts on prediction market platforms.
