The U.S. Commodity Futures Trading Commission (CFTC) has reportedly placed Polymarket, the largest DeFi prediction market platform, under scrutiny.
According to Bloomberg’s report, citing sources familiar with the matter, the platform is investigating whether it allows clients to improperly trade or trade binary options and whether they need to be registered with the institution.
It was also learned that Polymarket is in talks for a new investment round with a valuation of approximately 1 billion dollars. Sources also stated that the New York-based company recruited the former head of the CFTC’s executive branch to deal with the investigation.
The CFTC declined to 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.” said.
The company may face fines or restrictions if any criminal finding is found as a result of the investigation.