The Commodity Futures Trading Commission is investigating whether prediction market platform Polymarket violated a 2022 settlement aimed at banning U.S. users from offshore platforms, officials said.
The investigation is part of a broader investigation authorities launched into Polymarket earlier this year after the Wall Street Journal revealed that Polymarket paid content creators to post videos showing mock trades and fabricated wins on dummy versions of its website.
The latest investigation focuses on whether Polymarket previously violated the 2022 settlement and is unrelated to the platform’s current operations, said the people, who spoke on condition of anonymity because they were not authorized to speak publicly.
The official added that the federal agency is investigating Polymarket’s management of the site, which aims to detect customers’ locations, as well as the platform’s advertising in the United States.
The CFTC is also investigating the company’s U.S. platform, which launched in late December, specifically its customer onboarding process and safeguards, the people said. Reuters first reported the latest research.
A person familiar with the investigation declined to say when the CFTC would begin investigating Polymarket.
News of the CFTC investigation comes a week before the Nov. 3 midterm elections, with polls showing Democrats wresting the House majority from Republicans and a close race in the Senate, and amid growing concerns from mental health experts and lawmakers about the explosive growth of prediction markets over the past year.
Polymarket declined to comment on the investigation. The CFTC did not respond to requests for comment.
In 2022, Polymarket suspended access to its platform for U.S. users and paid a $1.4 million civil penalty to the CFTC as part of an enforcement settlement with the CFTC under the Biden administration.
In 2024, the CFTC began investigating Polymarket’s compliance with its agreements, and the Department of Justice also launched a related investigation. Both federal agencies concluded these investigations into the platforms in July 2025.
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