Exclusive-US agency is again probing if Polymarket broke 2022 settlement, sources says

The Commodity Futures Trading Commission (CFTC) is re-examining whether Polymarket, a prediction market operator, breached a 2022 settlement. The regulatory body had previously opened an inquiry into the company, which it subsequently closed without charging Polymarket, in 2024. Sources familiar with the matter say the CFTC is now scrutinizing the company's controls and processes for determining users' locations and its advertising activities within the United States.

Polymarket, based in New York, operates an offshore entity in Panama. The CFTC is also looking into the company's US platform, including its customer onboarding and protection measures. Reuters is reporting these details for the first time. The agency's renewed probe raises questions about why it closed a similar investigation last year and why the Justice Department did not pursue charges.

Polymarket has stated it has strengthened its controls, prohibiting the use of VPNs and VPN-like tools to bypass restrictions. The firm claims US users circumventing these measures are rare.