The US Commodity Futures Trading Commission opened three previously undisclosed investigations into Polymarket trades. Documents obtained by WIRED reveal the probes. They cover potential insider trading and other market violations.
One investigation examined trades tied to President Biden’s pardons. Another focused on activity surrounding the Iran conflict. A third looked at possible insider trading involving Google.
The Commodity Futures Trading Commission oversees prediction markets in the United States. Polymarket lets users bet on real-world events. Regulators scrutinize such platforms for signs of improper trading.
The documents came to light through a Freedom of Information Act request. They show the agency pursued these matters quietly. None of the investigations had been reported before.
Insider trading concerns arise when traders act on nonpublic information. Prediction markets can be vulnerable to this risk. Trades placed before major news events often attract regulatory attention.
The Biden pardon probe likely centered on timing around clemency decisions. The Iran-related investigation may involve military or diplomatic developments. The Google inquiry suggests possible leaks of corporate information.
Polymarket has faced growing regulatory pressure in recent years. Federal authorities have questioned whether the platform complies with US law. The company previously settled with regulators over unrelated charges.
These newly revealed investigations add to the platform’s legal challenges. They also highlight broader scrutiny of event-based trading. Regulators continue to weigh how existing rules apply to prediction markets.
