CFTC investigates Polymarket over business and social media practices

CFTC has opened a wide ranging investigation into Polymarket’s business activities, including its social media operations, according to new reports.

According to Bloomberg, the Commodity Futures Trading Commission is conducting an extensive investigation into prediction market platform Polymarket that covers multiple parts of its business, including its social media activities.

The report follows a Wall Street Journal investigation published last week that alleged Polymarket hired dozens of mostly college-aged content creators to post fake trading videos designed to attract new users. Bloomberg reported that the CFTC inquiry extends beyond those marketing practices into other aspects of the company’s operations.

CNBC has separately reported, citing a person familiar with the matter, that the investigation remains active, although the source did not disclose when it began. 

Both the CFTC and Polymarket have yet to issue an official statement regarding the matter.

Investigation follows scrutiny over promotional campaign

The Wall Street Journal has also alleged that Polymarket used replica versions of its trading platform to create promotional videos showing fabricated bets and winnings.

According to the newspaper, it reviewed 1,105 videos posted between December 2025 and mid-May and found that about 70% contained simulated trades rather than real market activity. The report said the campaign displayed roughly $1.9 million in fake bets, including nearly $900,000 in fabricated winnings that would instead have resulted in losses if placed on the live platform.

Further, it alleged that creators were paid about $2,000 to $3,000 per month through marketing contractor Virality and were instructed not to disclose the sponsorships. Analytics firm Tubular, separately, estimated the videos generated more than 140 million views across TikTok, YouTube, and Instagram.

Responding to those allegations, Polymarket told CNBC it is conducting a comprehensive audit of its active promotional content to ensure it complies with company standards as well as regulatory and legal disclosure requirements.

Questions over U.S. access continue

Bloomberg reported that the CFTC previously closed, alongside the U.S. Department of Justice, an investigation into whether Polymarket violated restrictions on U.S. users without filing charges last year. 

The company has barred Americans from its main platform since reaching a settlement with the regulator in 2022, although the report noted that some users continue accessing the service through virtual private networks.

The company has also been working to restore access to the U.S. market. As crypto.news has previously covered, Polymarket launched a CFTC-regulated U.S. exchange in December.

In the meantime, Senators Adam Schiff and John Curtis asked CFTC Chair Michael Selig last week to confirm whether the agency had opened an investigation into Polymarket’s advertising practices and to explain how it has prevented the platform from attracting U.S. users since the 2022 settlement.

According to their letter, the senators also questioned whether the agency has sufficient oversight tools to supervise prediction markets and requested details on advertising standards, influencer disclosure rules, consumer safeguards and age verification requirements.

The current inquiry would be the first major investigation into an event contract platform under CFTC Chair Michael Selig, whose tenure has generally been viewed as supportive of prediction markets.