The agency and Justice Department closed similar investigations in July 2025 without filing charges. Nevertheless, the renewed scrutiny raises questions about the effectiveness of Polymarket’s compliance measures.
Polymarket prohibits virtual private networks (VPNs) used to evade geographic restrictions. Additionally, the company says it monitors suspicious activity and blocks restricted users from its offshore platform.
US Expansion Adds Regulatory Pressure
The investigation also covers Polymarket’s US operations, which expanded after the company acquired a CFTC-licensed derivatives exchange in 2025. Consequently, regulators are examining customer protections and procedures governing access to the domestic platform.
Moreover, concerns about insider trading have intensified as prediction markets attract greater participation. In April 2026, US authorities charged a soldier over alleged insider bets on Polymarket.
Both Polymarket and the CFTC declined to comment on the latest investigation. However, the probe does not establish wrongdoing or guarantee enforcement action.
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