Polymarket Faces Renewed CFTC Probe Over 2022 Settlement, Sources Say

The U.S. Commodity Futures Trading Commission (CFTC) has revived an investigation into whether prediction market operator Polymarket violated the terms of a 2022 enforcement settlement, according to two people familiar with the matter. The probe, which the agency reportedly closed last year, centers on whether the company took adequate measures to prevent U.S. users from accessing its main overseas platform.

Spokespeople for both the CFTC and Polymarket declined to comment. Regulatory investigations do not necessarily indicate wrongdoing and may not result in enforcement action.

Scope of the Renewed Scrutiny

According to the sources, the revived CFTC inquiry is focused on Polymarket's past controls and processes for ensuring compliance with the settlement. The agency is reportedly examining:

• The effectiveness of Polymarket's controls for determining customer locations.
• The company's advertising activities within the United States.
• Customer onboarding processes and protections for its separate, U.S.-based platform, which began rolling out late last year.

The Wall Street Journal and Bloomberg previously reported in June that the CFTC was broadly probing the company, but these new details provide a more specific focus for the investigation.

A History of Regulatory Probes

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In January 2022, Polymarket settled with the CFTC over allegations it was operating an unregistered platform in the U.S. As part of that deal, the company agreed to cease offering its markets to American customers. However, as betting on the 2024 U.S. election gained traction on the platform, questions arose about whether Americans were circumventing its geographic restrictions.

This led the CFTC and the Department of Justice to open probes into the company's compliance in 2024. In July 2025, Polymarket CEO Shayne Coplan announced on social media that both agencies had closed their investigations and cleared the company. Shortly after, Polymarket acquired a CFTC-licensed exchange to launch its official U.S. operation. The revival of the probe raises new questions about why the previous inquiry was shuttered.

Market Context and Previous Incidents

Prediction markets, which allow users to bet on the outcome of real-world events, have grown significantly but have also attracted regulatory concern over potential misuse, such as insider trading. Polymarket has stated it has revamped its controls, expressly prohibits the use of tools like VPNs to bypass its restrictions, and has referred suspicious activity to authorities.

In a case that highlights these concerns, the CFTC and DOJ in April charged a U.S. soldier with making $400,000 from alleged insider bets on Polymarket’s offshore platform. According to the indictment, the individual used a VPN to access the site from the U.S. Polymarket stated at the time that it had referred the matter to law enforcement.