Polymarket's Third CFTC Rodeo: Regulators Lope Back In Over Fake Betting Allegations 🐂

Polymarket is facing an extensive investigation by the U.S. Commodity Futures Trading Commission (CFTC) over allegations that the crypto prediction market platform paid online creators to fabricate bets and winnings aimed at U.S. users, according to a Bloomberg report citing a person familiar with the matter. The probe, which began earlier this year, marks the third time the CFTC has examined Polymarket.

The Commission is reviewing Polymarket's social media activity as part of the investigation, according to people familiar with the matter. The scrutiny comes as state regulators across the U.S. have separately moved to crack down on prediction market platforms operating in their jurisdictions.

This is not Polymarket's first regulatory encounter. In 2022, the CFTC investigated the platform for operating an unregistered derivatives exchange, resulting in a $1.4 million fine and a ban on offering prediction markets to U.S. users. Between 2024 and 2025, the CFTC and the Department of Justice (DOJ) examined whether Polymarket was violating that 2022 settlement, and both agencies eventually closed their inquiries without new action.

Details of the current probe, including the specific creators involved, the value of any alleged fake bets, or potential penalties, were not disclosed in the Bloomberg report. Polymarket has not publicly commented on the latest investigation. The CFTC declined to comment on the existence of the probe, according to Bloomberg.