Updated
Updated · CBS New York · Jun 22
Polymarket Audits Marketing After WSJ Alleges $1.9 Million in Fake Betting Wins
Updated
Updated · CBS New York · Jun 22

Polymarket Audits Marketing After WSJ Alleges $1.9 Million in Fake Betting Wins

3 articles · Updated · CBS New York · Jun 22

Summary

  • Polymarket said it is conducting a comprehensive audit of active promotional content after the Wall Street Journal reported creators were paid to post videos falsely showing customers winning a combined $1.9 million.
  • 1,100 TikTok videos from 10 creators were reviewed by the Journal, which said many used dummy sites made to resemble Polymarket and that 118 videos showed nearly $900,000 in gains where matching trades would have lost more than $166,000.
  • The report also said a marketing contractor told clippers to redistribute the videos, extending their reach and helping drive users to Polymarket's offshore, unregulated platform.
  • The allegations add to existing scrutiny over insider-trading concerns and Polymarket's regulatory status: U.S. regulators barred it in 2022, while its newer CFTC-approved U.S. service remains invite-only and iPhone-only.

Insights

After faking wins and facing insider trading claims, can Polymarket's major league partnerships survive?
As regulators crack down on fake ads, is the era of unregulated prediction markets ending?