The Commodity Futures Trading Commission (CFTC) is investigating whether Polymarket complied with restrictions on US access to its offshore prediction market under a 2022 settlement, according to Reuters, which cited two people familiar with the matter.
The reported review forms part of a broader CFTC investigation opened earlier this year. One source said investigators are looking at Polymarket's past controls and processes, including how the company determined customers' locations and whether it took sufficient steps to prevent US users trading on the international site.
Reuters said the agency is also examining Polymarket's advertising in the US and the onboarding and consumer protections on its separate American exchange, which began rolling out late last year.
These are reported lines of inquiry. The CFTC has not announced a violation or enforcement action arising from the current investigation.
In January 2022, the CFTC ordered Polymarket's parent, Blockratize, to pay a $1.4m civil penalty after finding that it had offered event-based binary options without the required exchange designation or registration.
The order required the company to wind down noncompliant markets and cease the violations identified by the regulator. Under the settlement, Polymarket also stopped offering the offshore market to US users.
The commission and the Department of Justice investigated possible settlement breaches around the 2024 presidential election, when questions arose over whether Americans could bypass geographic restrictions. Those inquiries closed in 2025 without charges. Neither agency has publicly explained the closures, Reuters reported.
Polymarket says it prohibits virtual private networks and similar tools used to evade location limits, and that it monitors its international platform for restricted users and misconduct.
In August, its global head of investigations and intelligence, Shana Bautista, told Reuters that US users bypassing controls was not a prevalent problem. Spokespeople for Polymarket and the CFTC declined to comment on the latest report.
In a separate examination of prediction market practices, the New York City Council opened a marketing inquiry in August, requesting information from Polymarket and three other operators about advertising and consumer protections.
Polymarket acquired CFTC-regulated exchange and clearing infrastructure in 2025 to support its separate US operation
