Senators Demand CFTC Investigate Polymarket After $1.9M in Fake Bets Exposed

TLDR

• Bipartisan senators Curtis and Schiff urged the CFTC to investigate Polymarket over fake bet advertising
• A Wall Street Journal review found 70% of 1,105 influencer videos featured fake bets totaling ~$1.9 million
• The CFTC reportedly has an ongoing investigation into Polymarket
• A consumer group sued Polymarket in DC court for targeting college students with deceptive marketing
• Polymarket previously settled with the CFTC in 2022 and paid $1.4 million in fines

Republican Senator John Curtis and Democratic Senator Adam Schiff sent a letter to CFTC Chair Michael Selig on Thursday, calling for an investigation into prediction market platform Polymarket.

The letter follows a Wall Street Journal investigation published June 20 that found Polymarket paid social media creators to film fake bets on replica versions of its site.

The Journal reviewed 1,105 videos from 10 creators between December 2025 and mid-May 2026. About 70% of the videos showed bets being placed. None of the wagers, totaling roughly $1.9 million, were real.

The senators said the activity amounted to “deceptive marketing tactics to promote gambling-style products to US audiences.”

Polymarket said it is conducting a “comprehensive audit of active promotional content” to ensure it meets regulatory and legal disclosure requirements.

CFTC Investigation Already Underway

CNBC reported Friday, citing a person familiar with the matter, that the CFTC has an active and extensive investigation into Polymarket. The agency told The Block it could not confirm or deny any investigation.

This is not Polymarket’s first brush with regulators. In 2022, the platform settled with the CFTC over offering “event-based binary options” and paid $1.4 million in fines. It also agreed to block US users at that time.

In 2024, the FBI seized Polymarket CEO Shayne Coplan’s phone during a reported Department of Justice inquiry over alleged US user access.

Polymarket is currently valued at $15 billion, and the platform has seen billions of dollars in monthly volume over the past year.

Consumer Lawsuit Filed in DC Court

On Friday, the National Association of Consumer Advocates filed suit against Polymarket in the Superior Court of the District of Columbia.

The group alleged the platform used influencers, including Logan Paul, to target college-aged users with misleading marketing that hid the real odds of losing money.

An insider trading case has also emerged from the platform. Army soldier Gannon Ken Van Dyke, 38, was arrested for allegedly using confidential information to place a bet on Venezuelan President Nicolás Maduro’s removal from power, earning over $400,000.

Senators Curtis and Schiff asked Selig to respond in writing by July 10, with questions covering whether the CFTC is investigating Polymarket, whether the ads were legal, and whether the agency has enough resources to regulate prediction markets.

The CFTC has been in an ongoing dispute with US states over which regulator has authority over sports-related event contracts on prediction market platforms.

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