The Commodity Futures Trading Commission is investigating whether prediction market platform Polymarket violated a 2022 settlement meant to ban U.S. users from its offshore platform, according to a person familiar with the matter.
The investigation is part of a broader probe the agency opened into Polymarket earlier this year, after a Wall Street Journal expose said Polymarket paid content creators to post videos showing simulated trades and fabricated wins on dummy versions of its website.
The latest inquiry focuses on whether Polymarket previously broke the 2022 settlement, and is unrelated to the platform's present operations, said the person, who spoke on condition of anonymity because they are not authorized to speak publicly.
The federal agency is inquiring into Polymarket controls that are meant to detect where customers are located, as well as the platform's advertising in the U.S., the person added.
The CFTC is also looking into the company's U.S. platform that launched in late December, specifically in its customer onboarding processes and protection measures, according to the source. Reuters first reported the latest investigation.