CFTC Opens Broad Investigation Into Polymarket Over Fake Bet Allegations

The CFTC is conducting an extensive investigation into Polymarket over allegations the platform paid influencers to create fake bets and winnings targeting U.S. users, despite a 2022 ban.

• CFTC probe reportedly began earlier this year and is the third investigation into Polymarket since 2022
• Platform previously paid $1.4 million fine and was banned from offering prediction markets to U.S. users
• Wall Street Journal reported influencers created fake betting content without disclosing paid partnerships
• Polymarket founder Shayne Coplan and CMO Matthew Modabber also face a new lawsuit over alleged deceptive marketing
• Senators Schiff and Curtis have demanded the CFTC respond by July 10 on whether it is investigating

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