The U.S. Congress has expanded its investigation into prediction markets by targeting Hyperliquid, Crypto.com, and Aristotle Exchange, the operator of PredictIt. House Committee on Oversight Chairman James Comer sent letters to the CEOs of all three platforms on September 29, seeking information on customer identification, geolocation, and suspicious activity reporting. The investigation follows alleged insider trading cases, including a U.S. special forces soldier allegedly making $400,000 betting on Venezuelan President Nicolás Maduro’s removal. Hyperliquid, a fully decentralized platform without KYC requirements, is under scrutiny for a $1.1 billion short position placed before a major tariff policy announcement. The House committee says it has received nearly 1,000 documents and five briefings from Kalshi and Polymarket, while Senate Democrats push for bipartisan legislation with SEC oversight.
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