Key facts
- Polymarket paid social media influencers to create videos of fake winning bets on its prediction market.
- The promotion used cloned websites and undisclosed payments to creators, targeting US residents.
- The Wall Street Journal identified fake bets totaling $1.9 million across 1,105 videos from 10 creators.
- The campaign generated over 140 million views across TikTok, YouTube, and Instagram.
- Polymarket's main platform has been restricted in the US since 2022 due to CFTC action.
- Polymarket stated it is conducting an audit of its promotional content.
Polymarket, a prediction market platform, allegedly paid dozens of social media users to create videos showcasing fake winning bets as part of a promotional campaign. The Wall Street Journal investigation found that these creators were instructed to use cloned websites, hide their paid partnerships, and simulate trades that would have actually resulted in losses.
These videos, which often depicted creators winning substantial amounts and referring to the money as 'free money,' were designed to appear genuine and attract users to Polymarket's unregulated platform. The campaign reportedly targeted US residents, with creators paid between $2,000 and $3,000 per month. The Journal identified fake bets totaling $1.9 million across 1,105 videos from 10 creators, with some videos showing wins that would have actually resulted in over $166,000 in losses.
Polymarket's main platform has been restricted in the US since 2022, following a determination by the Commodity Futures Trading Commission (CFTC) that it was operating an illegally unregistered exchange. While users can circumvent these restrictions using VPNs, Polymarket also offers a more limited, US-regulated service through a mobile app. The 'poiymarket.com' website used by creators was taken down after the Journal inquired about the marketing operation.
In response to the investigation, Polymarket stated it is committed to maintaining accurate and transparent markets and is conducting a comprehensive audit of its promotional content to ensure compliance with standards and regulations. The company, along with rival Kalshi, has Donald Trump Jr. as an advisor, and a venture capital firm backed by him has invested in Polymarket.