Senators Demand CFTC Probe of Polymarket’s ‘Fake Bet’ Videos
Senators John Curtis and Adam Schiff urged the CFTC to investigate Polymarket over reports it paid influencers to post videos of fake bets.
In Brief
- Senators John Curtis and Adam Schiff urged the CFTC to investigate Polymarket over reports it paid influencers to post videos of fake bets.
- The Wall Street Journal reviewed 1,100+ videos and found 70% showed fake bets worth nearly $2 million, with many creators undisclosed.
- Polymarket said it is “conducting a comprehensive audit of active promotional content” to meet disclosure rules.
Two US senators want federal regulators to take a hard look at how Polymarket markets itself. Republican John Curtis and Democrat Adam Schiff sent a letter to CFTC Chair Mike Selig urging an investigation into reports that the platform paid social-media influencers to post videos of fake bets, Cointelegraph reported.
The bipartisan push lands as Polymarket’s World Cup volume makes headlines — and as the platform’s US regulatory status stays unsettled.
A prediction market under federal scrutiny
The senators wrote that they were concerned Polymarket “used deceptive marketing tactics to promote gambling-style products to US audiences.” In the letter, they said: “If accurate, these allegations are deeply troubling and demand immediate scrutiny from the Commodity Futures Trading Commission.”
The trigger was a Wall Street Journal report from June 20 that Polymarket paid influencers to film fake trades on sites resembling its platform, with many creators not disclosing payment. The Journal said it reviewed over 1,100 videos and found 70% featured fake bets totaling nearly $2 million.
The letter also followed WSJ and CNBC reports that the CFTC was already investigating Polymarket — a separate thread from the marketing complaint but part of the same regulatory spotlight. Prediction markets just cleared $50 billion in monthly World Cup volume, CoinDesk reported, which only raises the stakes.
How Polymarket is responding
Polymarket pushed back gently. A company spokesperson told Cointelegraph it was “conducting a comprehensive audit of active promotional content to ensure it complies with our standards, as well as applicable regulatory and legal disclosure requirements.”
The defense matters because disclosure is the crux. Influencer posts that fail to flag payment can breach FTC endorsement rules, and the senators’ letter frames the issue as consumer protection, not just platform optics.
Polymarket’s US standing is already complicated. The global exchange was fined $1.4 million by the CFTC in 2022 and is not licensed for US users, while a separate regulated US app requires KYC and settles in dollars, Cointelegraph reported on the onboarding boom. A Polymarket whale losing $1.2 million shows how volatile these markets get, and a $345 million Iran deal shows geopolitical contracts draw the same regulatory glare.
FAQ
Which senators asked the CFTC to investigate Polymarket?
Republican Senator John Curtis and Democratic Senator Adam Schiff sent a bipartisan letter to CFTC Chair Mike Selig urging a probe into Polymarket’s influencer marketing, per Cointelegraph.
What did the Wall Street Journal find?
The Journal reported on June 20 that Polymarket paid influencers to film fake trades, and that 70% of 1,100+ reviewed videos showed fake bets worth nearly $2 million, with many creators undisclosed.
How did Polymarket respond?
A Polymarket spokesperson told Cointelegraph the company is “conducting a comprehensive audit of active promotional content” to ensure compliance with its standards and disclosure rules.
