CFTC probes Polymarket over compliance with 2022 settlement
The Commodity Futures Trading Commission is investigating whether Polymarket allowed U.S. users onto its offshore prediction market in violation of a 2022 settlement, examining location verification, advertising, and domestic platform onboarding.
The Commodity Futures Trading Commission is investigating whether prediction market Polymarket violated a 2022 regulatory settlement by failing to block U.S. users from its offshore platform, according to a Reuters report citing two people familiar with the matter. Investigators are scrutinizing how Polymarket determined user locations, its advertising practices in the United States, and customer onboarding and safeguards on the U.S. platform it began rolling out late last year. One source told Reuters that the inquiry into whether U.S. residents accessed the offshore site centers on the company's past controls and processes.[1][2][4]
In January 2022, Polymarket settled CFTC charges that it offered unregistered event-based binary options, paying a $1.4 million civil penalty and agreeing to halt services to U.S. users. The CFTC and the Department of Justice previously investigated the company's compliance with that deal during the run-up to the 2024 U.S. presidential election, including an FBI search of CEO Shayne Coplan's New York residence in November 2024. Both agencies closed those prior inquiries in July 2025 without filing charges. Polymarket subsequently acquired a CFTC-licensed derivatives exchange, which it used to launch its domestic U.S. platform.[1][4]
Polymarket has maintained that it prohibits VPNs and enforces restrictions against unauthorized access. However, questions over access resurfaced after a U.S. soldier was charged in April with trading on insider information via a VPN on the offshore exchange, an issue Polymarket stated it referred to law enforcement. Representatives for the CFTC, Polymarket, and the Justice Department declined to comment on the renewed probe.[1][4]
Key facts
- The CFTC is investigating whether Polymarket violated its 2022 settlement by failing to prevent U.S. users from accessing its offshore platform.
- The probe covers Polymarket's geolocation checks, U.S. advertising activities, and onboarding and customer protections on its U.S. platform.
- In January 2022, Polymarket settled CFTC charges by paying a $1.4 million civil penalty and agreeing to bar U.S. users.
- The CFTC and the Department of Justice closed earlier investigations into Polymarket in July 2025 without bringing charges.
- Spokespeople for the CFTC, Polymarket, and the Justice Department declined to comment on the investigation.
Sources · 4 sources
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UnchainedArticle ·
Polymarket Faces Renewed CFTC Probe Over Whether It Broke 2022 Settlement: Report Polymarket is under CFTC investigation over whether it lived up to a 2022 settlement under which it agreed to keep US users off its offshore prediction market, Reuters reported on Tuesday, citing two people familiar with the matter. According to the report, investigators are looking at how Polymarket determined where its customers were located, its advertising in the US, and customer onboarding and protections on the US platform it began rolling out late last year. The scrutiny of whether Polymarket kept US users out focuses on its past controls and processes, one source told Reuters. Reuters said the settlement questions fall under a wider CFTC investigation opened earlier this year. Several outlets reported in June on that probe. Reuters said that scope had not been reported before. Spokespeople for the CFTC, Polymarket and the Justice Department declined to comment to Reuters, and none had issued a public statement by publication time. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . The 2022 Deal In January 2022, Polymarket settled CFTC charges that it had offered event-based binary options without being registered as an exchange, paying a $1.4 million civil penalty and agreeing to wind down markets that did not comply with the Commodity Exchange Act. As part of that settlement, Polymarket agreed to stop serving US users, according to Reuters. The CFTC first looked into Polymarket’s compliance with the deal in the run-up to the 2024 election, alongside a parallel Justice Department inquiry, and the FBI searched CEO Shayne Coplan ‘s home in New York in November 2024. Both agencies ended those probes in July 2025 without bringing charges. Polymarket’s Controls Shortly after, Polymarket bought a CFTC-licensed derivatives exchange, which it later used to launch its US business. The company has said it has revamped its controls, prohibits VPNs and similar workarounds to its geographic restrictions, and monitors for misconduct. Shana Bautista, Polymarket’s global head of investigations and intelligence, told Reuters in August that US users getting around those restrictions was not “a really prevalent issue.” Gannon Ken Van Dyke , a US soldier, was charged in April by the CFTC and the Justice Department, which allege he made $400,000 trading on inside information on Polymarket’s offshore site. According to the indictment, he reached the site through a VPN. He has pleaded not guilty. Polymarket has said it referred the case to authorities. The report comes days after Polymarket pushed out chief marketing officer Matthew Modabber, according to a separate report, and less than two weeks after it took Ohio to federal court citing new CFTC rules. Reuters noted that the new details raise questions about why the earlier probes were closed, and that an investigation does not necessarily point to wrongdoing. Related Listen: Everyone Wants a DCM. Why Is Kalshi Still Losing? – DEX in the City The post Polymarket Faces Renewed CFTC Probe Over Whether It Broke 2022 Settlement: Report appeared first on Unchained .
Open source - RE
Reuters@ReutersPost on X ·
EXCLUSIVE: US agency is again probing if Polymarket broke 2022 settlement, sources says https://t.co/JlgBidYjaR
Open source - LS
Laura Shin@laurashinPost on X ·
Polymarket's location checks, US advertising and onboarding on its US platform are all under CFTC review, according to a Reuters report citing two unnamed sources. In 2025, the CFTC and Justice Department closed earlier probes into whether it honored a 2022 settlement. https://t.co/we4md6hGTU
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Reuters: CFTC Again Probes Whether Polymarket Violated 2022 Settlement According to Reuters, citing two sources familiar with the matter, the CFTC is investigating whether Polymarket violated its 2022 settlement by failing to take sufficient steps to block U.S. users from its offshore platform. The investigation covers Polymarket's geolocation controls and U.S. advertising activities. The agency is also examining customer onboarding and protection measures on Polymarket's U.S. platform. The CFTC and DOJ closed similar investigations in 2025 without bringing charges. Both Polymarket and the CFTC declined to comment.
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