CFTC Opens Investigation Into Polymarket's Fake Influencer Campaign Targeting U.S. Investors

The Commodity Futures Trading Commission has launched a formal investigation into prediction market platform Polymarket over deceptive advertising. Wall Street Journal reporting found the company paid content creators to stage trades on dummy websites mimicking the real platform, amplifying $1.9 million in fabricated bets across 1,100+ videos to American audiences. Polymarket is barred from operating in the U.S. under a 2022 CFTC settlement. The scheme raises a novel regulatory question: whether a geofenced offshore platform can legally run domestic influencer campaigns for prohibited products.