Polymarket Staged $900K in Fake Winnings to Court Banned US Users, WSJ Finds

A Wall Street Journal investigation published over the weekend found that Polymarket paid a network of social-media creators to stage bets and winnings on near-perfect replicas of its own website, aiming to attract U.S. users barred from the platform. The Journal reviewed 1,105 videos, among which about 70% showed bets; none were real. Across 118 videos celebrating wins, creators displayed nearly $900,000 in fabricated winnings, which would have lost over $166,000 if placed on the actual site.

Polymarket paid creators roughly $2,000 to $3,000 per month, instructing them not to disclose the arrangement. The campaign ran through a marketing contractor called Virality, which required that at least 60% of a creator’s audience be in the U.S. The content drew over 140 million views on TikTok, YouTube, and Instagram, according to analytics firm Tubular. Some creators added “@polymarket partner” to their bios only after being contacted by Journal reporters.

The fake bets took place on lookalike sites, including “poiymarket.com,” rather than the real Polymarket platform. The platform is legally barred from serving U.S. users since a 2022 settlement with the Commodity Futures Trading Commission, though users can still access it via VPN. Commodities law prohibits deceptive marketing, and the CFTC has previously taken action against similar simulated trading promotions.

The Journal also noted that Polymarket entered a multimillion-dollar deal with streamer Adin Ross, promoting videos about trading on inside information. This follows a POLITICO investigation finding that Polymarket’s chief marketing officer paid influencers at least $350,000 to promote the platform without disclosing it.

Polymarket told the Journal it is committed to maintaining accurate, fair, and transparent markets and will conduct a comprehensive audit of its promotional content. The revelations come as the platform seeks to return to the U.S. market and handles record prediction-market volumes exceeding tens of billions monthly.

Source: https://news.bitcoin.com/polymarket-staged-900k-in-fake-winnings-to-court-banned-us-users-wsj-finds/