The Commodity Futures Trading Commission is investigating whether prediction market platform Polymarket violated a 2022 settlement designed to ban U.S. users from accessing its offshore platform [1]. The investigation is part of a broader probe the CFTC opened into Polymarket earlier in the year, following a Wall Street Journal expose revealing that Polymarket paid content creators to post videos showing simulated trades and fabricated wins on dummy versions of its website [1]. According to a person familiar with the matter, the latest inquiry focuses on whether Polymarket previously broke the 2022 settlement and is unrelated to the platform's present operations [1].
The federal agency is specifically examining Polymarket's geolocation detection mechanisms designed to prevent U.S. user access, as well as the company's advertising practices within the United States [1]. Additionally, the CFTC is scrutinizing Polymarket's U.S. platform that launched in late December, with particular attention to customer onboarding processes and protection measures [1]. In 2022, Polymarket had stopped U.S. users from accessing its platform and paid a $1.4 million civil penalty to the CFTC as part of an enforcement settlement [1].
Notably, both the CFTC and the Justice Department had opened related investigations into Polymarket's compliance with the 2022 agreement in 2024, but both federal agencies closed those investigations in July 2025 [1]. The renewed probe comes amid escalating concern from mental health experts and lawmakers about prediction markets' explosive growth over the past year [1]. Neither Polymarket nor the CFTC responded to requests for comment regarding the investigation [1].
CONCLUSION
Polymarket faces renewed regulatory scrutiny from the CFTC over potential violations of its 2022 settlement restricting U.S. user access to its offshore platform, with investigators examining geolocation controls, advertising practices, and customer protection measures. The investigation represents a significant regulatory challenge for the prediction market platform despite previous investigations being closed in July 2025, reflecting ongoing government concerns about compliance and consumer protection in the rapidly growing prediction markets sector.