CFTC Probes Polymarket Over Marketing Tactics and Regulatory Compliance

The regulatory focus intensified after reports surfaced that Polymarket allegedly employed college-aged creators to post simulated betting videos. A recent investigation found that approximately 70% of 1,105 videos reviewed between December 2025 and May contained fake trades. These clips depicted roughly $1.9 million in fabricated wagers, including nearly $900,000 in winnings that, if executed on the live platform, would have resulted in losses. Creators were reportedly compensated between $2,000 and $3,000 monthly via the contractor Virality, with instructions to conceal their sponsorships.

While Polymarket maintains it is auditing promotional content to ensure regulatory compliance, the scrutiny arrives at a delicate moment. The company has been attempting to re-enter the U.S. market, having launched a regulated exchange last December following a 2022 settlement that barred Americans from its primary site. Senators Adam Schiff and John Curtis have since pressed CFTC Chair Michael Selig for details regarding the agency’s oversight, specifically questioning how Polymarket prevents U.S. access and whether current consumer safeguards are sufficient. This marks the first major investigation into an event contract platform under Selig’s tenure, potentially setting a precedent for how the agency handles influencer-driven financial marketing.