Polymarket is under scrutiny after an investigation found the platform funded a large network of staged trading videos designed to mimic real profits while quietly targeting U.S. audiences despite regulatory limits.
fake profits and simulated trading uncovered
Analysis of 1,105 videos showed that about 70% of the activity—roughly $1.9 million in supposed bets—was fabricated. Another 118 videos displayed around $900,000 in fictional winnings. If those trades had been real, they would have resulted in losses exceeding $166,000.
Much of the content was created on a lookalike site, “poiymarket.com,” which closely resembled the real platform but included altered interface elements. The site was used to stage trades and record videos, then taken offline after inquiries. Creators were reportedly paid $2,000 to $3,000 per month and instructed not to disclose sponsorships, while internal reviews encouraged phrases such as “free money.”
coordinated promotion targeting U.S. audiences
A marketing contractor oversaw teams of so-called “boosters,” who amplified videos across TikTok, YouTube, and Instagram. These efforts focused on audiences with at least 60% U.S. viewership, despite a 2022 settlement prohibiting the platform from offering its crypto-based services to U.S. traders.
The combined reach of these videos surpassed 140 million views before moderation actions led to account restrictions. Platform representatives said advertising must follow disclosure rules but did not confirm whether these specific campaigns violated policies.
Some videos used company-provided tools that replicated trades and displayed fake winning outcomes. In one case, a staged $100,000 bet appeared to succeed based on an event that never happened. Other clips showed celebratory “cashouts” filmed across U.S. locations that were later removed.
internal strategy and competitive pressure
Marketing records indicate that founder Shayne Coplan and chief marketing officer Vincent Modabber pushed aggressive online growth to compete with a U.S.-regulated rival. While both platforms expanded in 2025, by mid-2026 the competitor’s trading volume had surged ahead, nearly doubling Polymarket’s activity.
In April 2026, Polymarket’s volume fell for the first time in eight months to $10.2 billion, while the rival climbed to $14.8 billion. By May, the gap widened further, with the competitor processing more than $17.9 billion compared with under $8.9 billion across Polymarket’s operations.
influencer deals and manipulation concerns
The promotional push included a multimillion-dollar deal with streamer Adin Ross, who mentioned the platform during regular livestreams. Internal materials referenced at least 19 videos suggesting that trading with insider information was achievable, raising concerns about market manipulation.
The company said it prohibits trading based on non-public information and monitors suspicious activity. However, the issue has drawn increasing attention from regulators and lawmakers.
rising regulatory pressure
The controversy comes as U.S. oversight intensifies. The Commodity Futures Trading Commission filed a civil enforcement action in May 2026 against a Google employee accused of using confidential information to trade on the platform. In June, the agency proposed new rules to tighten oversight of event-based contracts.
Lawmakers are also examining the sector. The House Oversight Committee has begun reviewing safeguards against insider trading, while a Senate proposal—the Prediction Markets Security and Integrity Act—aims to establish national standards and return some authority to states.
A public comment deadline on the CFTC’s proposal is set for July 27, 2026, signaling potential near-term changes that could affect how platforms operate and how U.S. traders access them.
trust and transparency in question
Polymarket said it has launched an audit of its promotional content and reaffirmed its commitment to transparency. Still, the findings challenge confidence in a market where credibility is central.
For traders, the revelation that widely viewed “wins” were staged—and in many cases would have produced real losses—reshapes how promotional content is interpreted and raises broader questions about risk, authenticity, and oversight in prediction markets.
Concerned about prediction market risks? Learn how to trade regulated crypto derivatives more transparently and responsibly.
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