CFTC Put Polymarket Under A Microscope

CFTC put Polymarket under a microscope. The US regulator, the CFTC, reported that it is investigating the institution.

The U.S. Commodity Futures Trading Commission (CFTC) has announced that Polymarket, the largest DeFi (Decentralized finance) prediction market platform, is under scrutiny. According to Bloomberg's news, citing sources with knowledge of the matter, the platform is investigating whether it allows customers to improperly trade or trade binary options and whether they need to be registered with the institution. It is also said that Polymarket is in talks for a new investment round with a valuation of approximately 1 billion dollars. The sources also stated that the New York-based company has recruited the former head of the CFTC's executive branch to deal with the investigation. The U.S. Commodity Futures Trading Commission (CFTC) did not comment on the report, while Polymarket responded, not confirming or denying that any investigation was being conducted. An official from the company said, "Polymarket is committed to complying with applicable laws and regulations, providing regulators with information to assist in any investigation." The company may face fines or restrictions if any finding that constitutes a crime is found when the investigation is concluded.