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

Odaily Odaily reported that the U.S. Commodity Futures Trading Commission (CFTC) has recently launched an investigation into the prediction market platform Polymarket, which is still ongoing.

Previously, including a lawsuit filed by a consumer rights protection organization accepted by the Washington Superior Court, multiple parties have accused Polymarket of using paid endorsements on social media for misleading promotion and targeting college student groups. A Polymarket spokesperson responded that the group 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. Furthermore, over a dozen U.S. states have taken legal action against Polymarket and Kalshi, alleging they operate illegal sports betting, while the CFTC has countersued some states, asserting exclusive jurisdiction. (FT)