Key Points
- Senators Curtis and Schiff jointly called on the CFTC to examine Polymarket’s influencer marketing practices
- WSJ analysis revealed approximately 70% of 1,105 influencer promotional videos contained fabricated bets worth ~$1.9 million
- Sources indicate the CFTC has already launched an investigation into the platform
- Consumer advocacy organization filed legal action against Polymarket in Washington, DC for misleading college student targeting
- Polymarket reached a settlement with the CFTC in 2022, paying $1.4 million in penalties
On Thursday, Senator John Curtis (Republican) and Senator Adam Schiff (Democrat) delivered a formal letter to CFTC Chair Michael Selig, demanding a regulatory investigation into the prediction betting platform Polymarket.
The congressional request comes on the heels of a Wall Street Journal exposé released June 20, which revealed that Polymarket compensated social media influencers to demonstrate fake wagers on duplicated versions of its platform.
The Journal’s examination covered 1,105 promotional videos produced by 10 content creators spanning December 2025 through mid-May 2026. Approximately 70% of these videos depicted betting activity. None of the displayed wagers—which collectively totaled around $1.9 million—were genuine.
The lawmakers 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 performing a “comprehensive audit of active promotional content” to verify compliance with regulatory and legal disclosure standards.
Federal Investigation Already in Motion
CNBC disclosed Friday, based on information from a source with knowledge of the situation, that the CFTC is actively conducting an extensive investigation into Polymarket. The regulatory agency informed The Block it cannot confirm or deny any ongoing investigation.
This marks another regulatory challenge for Polymarket. In 2022, the company reached a settlement with the CFTC concerning the provision of “event-based binary options” and paid $1.4 million in penalties. As part of that agreement, it committed to restricting access for US users.
In 2024, FBI agents confiscated Polymarket CEO Shayne Coplan’s mobile device during what was reported as a Department of Justice investigation regarding alleged unauthorized US user participation.
Polymarket currently holds a $15 billion valuation, with the platform recording billions of dollars in trading volume monthly throughout the previous year.
Consumer Protection Lawsuit Initiated in Washington
The National Association of Consumer Advocates filed legal proceedings against Polymarket on Friday in the Superior Court of the District of Columbia.
The consumer protection organization claimed the platform leveraged influencers, including Logan Paul, to reach college-age demographics through deceptive promotional content that concealed the actual probability of financial losses.
An insider trading incident has also surfaced involving the platform. Army soldier Gannon Ken Van Dyke, age 38, was taken into custody for allegedly exploiting classified intelligence to wager on Venezuelan President Nicolás Maduro’s potential removal from office, reportedly profiting over $400,000.
Senators Curtis and Schiff requested Selig provide written answers by July 10, addressing questions about whether the CFTC is investigating Polymarket, the legality of the promotional materials, and whether the agency possesses adequate resources for prediction market oversight.
The CFTC remains engaged in a jurisdictional conflict with state regulators concerning which entity holds authority over sports-related event contracts on prediction market platforms.
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