Crypto betting app Polymarket reportedly hit by CTFC probe
Polymarket is being investigated for organizing crypto wagers and bets to predict the aftermath of real-world events.
Crypto-based betting application Polymarket is said to be facing an ongoing probe by the US Commodity Futures Trading Commission (CFTC), the country’s derivatives and futures markets regulator.
A Bloomberg report states the CFTC has launched an investigation on the firm for allegedly breaking the regulatory financial laws of the US. Additionally, Polymarket is also under scrutiny for unlawfully letting customers trade swaps.
Polymarket’s spokesperson has issued a confirmation that the firm will commit to complying with the laws prescribed by the CFTC and will assist the regulator in solving all their queries and related inquiries. The Commodities Futures and Trading Commission has however declined to comment on the concerned topic.
The factor of social value
Polymarket founder Shaun Coplan has asserted that it’s not only offering bettors to make good money, but it’s also providing “accurate forecasts of events via price discovery. ” Coplan has also stated that this type of data can be of “tremendous social value.”
According to two anonymous people with knowledge of the concerned matter, Polymarket is currently in talks with potential investors for a new funding round that can shoot up its market price to a striking $1 billion. The company has also facilitated shares worth 4 billion since its market debut in 2020.
Headquartered in New York, Polymarket has amassed a massive fan following, all thanks to its betting services that have attracted many users to place crypto-based bets and predict real-life events including elections, the private life of celebrities, and ballgames.
The firm doesn’t take custody of users’ cryptocurrencies or money, it just displays the existing markets on the Ethereum blockchain. As of Friday afternoon, Polymarket has shown dozens of wagers based on different world events spanning the sector of Finance and celebrity’s private life.