WSJ: Polymarket Accused of Illegally Marketing to U.S. Users Through False Trading and Faked Profit Videos

June 21 — An investigation by The Wall Street Journal has uncovered that a flood of "instant user earnings" videos circulating on social media platforms are not legitimate on the prediction market Polymarket. A significant portion of this content is produced by paid creators, who draw user attention and engagement with Polymarket’s prediction markets using tactics such as fabricated profit screenshots and inflated trading records. The report states that this type of content has gained widespread traction on platforms like TikTok, Instagram, and YouTube, creating the misleading perception that ordinary users can easily amass huge profits by wagering on politics, sports, and trending events. However, the actual situation is far from what is advertised: most users have not generated meaningful returns, and some viral cases are even completely fabricated. Polymarket intentionally promotes its offerings to American users through simulated trading demonstrations and counterfeit profit videos, the investigation reveals. Additionally, the platform has hired marketing company Virality to oversee its influencer promotion activities, with these efforts explicitly targeting U.S. users. Previously, Polymarket evaded regulatory restrictions by refusing to serve American users. If the latest WSJ report is accurate, this suggests the platform has long been operating within the legal gray area in the United States.