Polymarket Under CFTC Probe After Marketing Allegations

Polymarket is facing a regulatory investigation after reports of a misleading marketing campaign, just as the prediction market platform works through a $3.1 million hack that hit user wallets.

The Commodity Futures Trading Commission (CFTC) has an “ongoing and extensive” probe into the company, CNBC reported Friday, citing unnamed sources. The inquiry follows a Wall Street Journal investigation last week that alleged Polymarket paid content creators to simulate winning trades on near-identical copies of its website without disclosing the arrangement.

Polymarket told the Journal it would audit its active promotional content. The company said it is “committed to maintaining accurate, fair, and transparent markets” and is “constantly evaluating ways to improve how we’re engaging and earning the trust of our audience.”

Lawmakers called for tighter oversight after the WSJ report.

The CNBC report described the investigation as a reversal for Polymarket. The company was originally blocked from U.S. users but saw past CFTC and Department of Justice probes dropped without charges last year. This is the first high-profile CFTC investigation into a prediction market under Chairman Michael Selig, who had been seen as friendly to the industry.

Separately, CoinDesk reported Saturday that a phishing attack compromised 11 user wallets, stealing $3.1 million in PUSD tokens. A malicious script injected through a third-party vendor hit the Polygon network, and the stolen assets were bridged to Ethereum. Polymarket promised full refunds to all victims holding its native PUSD collateral.

Polymarket and the CFTC did not respond to requests for comment.