TLDR
- Cross-party senators Schiff and Curtis have called on the CFTC to probe Polymarket following revelations of fraudulent advertising practices
- An investigation by the Wall Street Journal uncovered that roughly 70% of 1,105 creator videos displayed fabricated wagers worth approximately $1.9 million
- Sources indicate the CFTC is already conducting an active probe into the platform
- A consumer advocacy organization has filed litigation against Polymarket in Washington DC, alleging deceptive practices targeting university students
- The platform reached a settlement with the CFTC in 2022, paying $1.4 million in penalties
Democratic Senator Adam Schiff and Republican Senator John Curtis jointly submitted a formal request to CFTC Chairman Michael Selig this Thursday, demanding a thorough examination of the prediction betting platform Polymarket.
They looked like they were getting rich on Polymarket—but none of it was real.
The prediction market has flooded social media with deceptive videos by paid creators, according to a Wall Street Journal investigation.
Read more: https://t.co/b8UeCYC9sM pic.twitter.com/ZRN3EFzxly
— The Wall Street Journal (@WSJ) June 25, 2026
Their correspondence comes on the heels of a comprehensive Wall Street Journal exposé released on June 20, which revealed that Polymarket compensated social media influencers to record simulated betting activity on mock versions of their platform.
The Journal’s analysis examined 1,105 promotional videos produced by 10 content creators spanning from December 2025 through mid-May 2026. Approximately 70% of these videos depicted betting transactions. Not a single one of these wagers, collectively valued at around $1.9 million, was genuine.
The lawmakers characterized this conduct 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 responded by stating it is undertaking a “comprehensive audit of active promotional content” to verify compliance with all regulatory and legal disclosure standards.
CFTC Investigation Already Underway
CNBC disclosed Friday, according to a source with direct knowledge of the situation, that the CFTC is pursuing an active and wide-ranging investigation into Polymarket. When contacted, The Block was informed by the agency that it cannot confirm or deny any ongoing investigations.
This isn’t Polymarket’s inaugural encounter with regulatory authorities. Back in 2022, the company reached a settlement with the CFTC regarding its provision of “event-based binary options” and paid $1.4 million in penalties. The platform also committed to restricting access for US-based users.
In 2024, federal agents from the FBI confiscated Polymarket CEO Shayne Coplan’s mobile device as part of a reported Department of Justice investigation concerning potential unauthorized access by American users.
Polymarket currently carries a valuation of $15 billion, with the platform processing billions of dollars in trading volume monthly throughout the previous year.
Consumer Lawsuit Filed in DC Court
This Friday, the National Association of Consumer Advocates initiated legal proceedings against Polymarket in the Superior Court of the District of Columbia.
The advocacy organization claims the platform leveraged influencers, including Logan Paul, to reach college-age audiences through deceptive promotional campaigns that obscured the actual probability of financial losses.
An insider trading incident has also surfaced involving the platform. Gannon Ken Van Dyke, a 38-year-old Army soldier, was taken into custody for purportedly utilizing classified information to wager on the potential ouster of Venezuelan President Nicolás Maduro, reportedly profiting over $400,000.
Senators Schiff and Curtis have requested a written response from Selig by July 10, seeking answers on whether the CFTC is actively investigating Polymarket, the legality of the promotional content, and whether the agency possesses adequate resources to effectively oversee prediction market platforms.
The CFTC remains embroiled in a jurisdictional conflict with state authorities regarding regulatory oversight of sports-related event contracts offered on prediction market platforms.
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