The Commodity Futures Trading Commission is investigating whether Polymarket violated a 2022 settlement that barred the platform from serving American users. The agency is examining the adequacy of its geolocation controls, advertising in the United States, and customer onboarding and protections on its U.S. platform, which launched in late 2025. In 2022, Polymarket paid a $1.4 million fine and agreed to block U.S. users from its offshore exchange, although some traders continued accessing it through VPNs. Regulatory scrutiny has intensified amid allegations of paid misleading content, an insider-trading case involving a U.S. soldier, and manipulation of five-minute bitcoin contracts that caused $8.2 million in losses, with 93% falling on retail bettors.
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