U.S. CFTC Launches Broad Investigation into Polymarket, Covering Social Media Activities and Wash Trading

CoinFeed June 30 news, according to Bloomberg, the U.S. Commodity Futures Trading Commission (CFTC) is conducting a broad investigation into the prediction market platform Polymarket, covering its social media activities and other business aspects. Previously, the Wall Street Journal reported that Polymarket hired dozens of social media creators, mostly college-age, to film fake trading videos to attract users. This investigation covers other aspects of the company's business. The CFTC and the Department of Justice last year concluded an investigation into whether Polymarket violated the ban on U.S. users, but some U.S. users still bypass the ban to access its main platform via VPNs and other methods. Since reaching a settlement with the CFTC in 2022, Polymarket has technically prohibited U.S. users from using the main platform, but the company is taking steps to reintroduce its main exchange to the U.S. and work with the CFTC to lift the ban.