CFTC Launches Investigation into Polymarket, Faces Multiple Allegations of Misleading Promotion on Social Media

Odaily Planet Daily News The U.S. Commodity Futures Trading Commission (CFTC) has recently launched an investigation into the prediction market platform Polymarket, and the investigation is still ongoing.

Previously, including a lawsuit filed by a consumer protection organization accepted by the Washington High Court, Polymarket has faced multiple allegations of using paid endorsements on social media for misleading promotion, specifically targeting college students. A Polymarket spokesperson responded that the company is committed to maintaining accurate, fair, and transparent markets and is currently conducting a comprehensive audit of active promotional content to ensure compliance with standards and regulatory disclosure requirements. Additionally, over a dozen U.S. states have taken legal action against Polymarket and Kalshi, accusing them of operating illegal sports betting, while the CFTC has countersued some states, asserting exclusive jurisdiction. (FT)