Regulators probe Polymarket over US trader access breach

Summarised from 3 outlets · Updated 27 Oct, 21:44 · Archive

The CFTC is investigating whether prediction market platform Polymarket violated a 2022 settlement requiring it to block US traders.

The Commodity Futures Trading Commission is investigating whether Polymarket violated a 2022 settlement that required the prediction market platform to block American traders from its offshore platform, based in Panama. The inquiry concerns the company's past safeguards rather than its current operations, according to sources familiar with the matter. The CFTC is examining Polymarket's methods for detecting where customers are located and its advertising activities in the United States.

Polymarket agreed to restrict US trading on its offshore platform in January 2022 after the CFTC accused it of illegally operating an unregistered derivatives trading platform and fined the company $1.4 million. The restrictions raised concerns during the 2024 presidential election, when billions of dollars in wagers moved through prediction markets amid concerns that Americans were using virtual private networks to disguise their locations.

The CFTC is also separately examining a newer, regulated US operation that Polymarket launched in late December, focusing on customer registration procedures and trader protections. Polymarket declined to comment on the investigation, and the CFTC did not respond to a request for comment. The latest probe comes after the agency closed similar investigations last year without bringing charges.

How it is being reported

• U.S. agency is again probing if Polymarket broke 2022 settlement, sources sayThe agency is examining Polymarket's controls for determining where customers are located, as well as its advertising activities in the U.S.The Japan Times · 28 Oct, 01:40
• Polymarket faces renewed CFTC probe over U.S. access to offshore platformThe federal agency had previously investigated whether Polymarket allowed U.S. users on to its offshore platform in 2024, but dropped the measures in July 2025.CNBC · 27 Oct, 21:24
• Feds probe whether Polymarket violated 2022 deal to block US traders: reportPolymarket is reportedly facing renewed scrutiny from federal regulators over whether it violated a 2022 settlement requiring the prediction market giant to block American traders from its offshore platform.New York Post · 27 Oct, 19:57

In this story: Polymarket · Commodity Futures Trading Commission · Panama · United States

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