Polymarket faces backlash after an investigation found influencers created fake betting videos, misleading users with $1.9M in non-existent wagers.
Summary
- An investigation has found that influencers were paid to create fake betting videos on imitations of Polymarket.
- None of the $1.9 million in purported bets analyzed were real, including a staged $100,000 win.
- The initiative targeted U.S. users, who are barred from accessing the main Polymarket site.
A recent report has uncovered that Polymarket, a cryptocurrency prediction market, engaged multiple young influencers to produce deceptive videos showcasing fictional bets on lookalike sites. This initiative was particularly aimed at U.S. audiences, who are currently restricted from using Polymarket's main platform.
The investigation, conducted by the Wall Street Journal, analyzed 1,105 videos from ten creators and found that while about 70% of these videos presented bets, not a single one of the approximately $1.9 million in wagers was legitimate. Notably, one video featured a purported $100,000 win that was fabricated.
"He captured the thrilling moment he purportedly won $100,000—though the bet was fabricated," stated the Wall Street Journal, highlighting the misleading nature of these promotions.
In one instance, a video showcased a college student celebrating a $100,000 win on a bet related to former President Donald Trump, but the Journal revealed that the bet was based on a claim that Trump never made in public. Additionally, many videos appeared to be recorded on fake versions of the Polymarket site, including one misspelled as "poiymarket.com," which sources suggest was created by Polymarket itself for testing purposes.
While the creators made claims of nearly $900,000 in winnings from these fictitious bets, the reality was that these would have resulted in substantial losses. They were reportedly paid between $2,000 and $3,000 monthly and were instructed to keep their compensation arrangements confidential, with some merely indicating they were "@polymarket partners" on social media.
Polymarket had previously faced regulatory challenges, resulting in a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) for operating without proper registration. Following this, the platform moved offshore in January 2022 but received approval to re-enter the U.S. market in November 2025 through a licensed exchange, Polymarket US, although access to its main site remains blocked for U.S. users.
In response to the allegations, Polymarket stated its commitment to maintaining accurate and transparent markets and plans to conduct a comprehensive audit of its promotional strategies.
Challenges Ahead for Polymarket
The revelations pose significant challenges for Polymarket as it attempts to gain legitimacy in the mainstream market while facing scrutiny from state regulators. The CFTC has maintained its authority over the industry, warning that unregulated offshore operations could lead to disasters similar to the FTX collapse. Various states have classified event contracts as illegal gambling, with Kentucky recently suing Polymarket over unauthorized betting claims, echoing prior legal actions taken by Nevada and Arizona.
On another front, the Trump administration has actively defended prediction markets against state regulations, while Democrats, including Senator Elizabeth Warren, have expressed concerns about the CFTC being influenced by the industry, linking favorable decisions to connections with President Trump and his family, who have ties to Polymarket.
These developments have led to bipartisan scrutiny of the CFTC, particularly regarding issues of insider trading and the regulation of offshore betting platforms.
