Bipartisan senators call for CFTC investigation into Polymarket after fake bets report

A bipartisan pair of senators is demanding that the Commodity Futures Trading Commission investigate Polymarket following reports that the predictions market paid social media creators to stage fake winning bets.

In a letter sent to CFTC Chair Michael Selig on Thursday, Sens. John Curtis, R-Utah, and Adam Schiff, D-Calif., raised concerns about the federal agency's ability to regulate those platforms.

"We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator," they said in a letter obtained by The Block.

The letter follows a Wall Street Journal report last week that found Polymarket paid dozens of social media creators to film themselves placing fake bets, and sometimes even faking wins on replicas of its site. As part of its investigation, the Journal reviewed 1,105 videos from 10 creators from December 2025 to mid-May. A bet appeared in about 70% of them. None of the wagers, worth about $1.9 million, were real.

Polymarket told the Journal it is "committed to maintaining accurate, fair, and transparent markets" and plans a comprehensive audit of its promotional content.

The Wall Street Journal first reported news of the letter on Friday, and said that the CFTC was in the middle of an ongoing investigation into Polymarket, citing a person familiar with the matter. In an email to The Block, a CFTC spokesperson said that the agency cannot confirm or deny an investigation.

Prediction markets have ballooned in size over the past year, with Polymarket being valued at $15 billion. A few years ago, Polymarket came under scrutiny from regulators under the Biden administration. In 2022, the platform settled with the CFTC over offering "event-based binary options," and agreed to pay $1.4 million in fines and block U.S. users. Later in 2024, the Federal Bureau of Investigation seized Polymarket CEO Shayne Coplan's phone and was reportedly facing a Department of Justice investigation over alleged U.S. users.

Insider trading concerns have also come into the spotlight in Washington following a bet made by an anonymous Polymarket user who earned more than $400,000 by wagering that Venezuelan President Nicolás Maduro would be removed from power before the end of the month. Prosecutors have since arrested active-duty U.S. Army Soldier Gannon Ken Van Dyke, 38, who allegedly used confidential information to place that bet.

As prediction markets have grown, the CFTC has asserted its jurisdiction over the firms, engaging in a battle with states in the process over which regulator oversees sports-related bets. Some lawmakers have raised concerns about whether the agency has enough resources to regulate prediction markets, particularly as they are set to have a larger role in regulating digital assets.

In their letter on Thursday, Sens. Schiff and Curtis asked the CFTC whether the agency is investigating Polymarket and whether it will "commit to preserving state and tribal authority over sports betting and casino-style gaming products."

"The Commission should not allow companies to invoke CFTC oversight as a way to avoid state and tribal gambling laws, weaken consumer protections, or promote betting-style products through deceptive campaigns," they said.

A Polymarket spokesperson said the platform is doing an audit of its promotional content. "We are part of a rapidly growing industry and are constantly evaluating ways to improve how we’re engaging and earning the trust of our audience," the spokesperson said. "As part of that commitment, we are conducting a comprehensive audit of active promotional content to ensure it complies with our standards, as well as applicable regulatory and legal disclosure requirements.”