Federal regulators have reportedly opened an investigation into Polymarket, a decentralized prediction-market platform. The Commodity Futures Trading Commission (CFTC) is said to be conducting an ongoing inquiry, according to a source familiar with the matter. A spokesperson for the CFTC declined to confirm the investigation or provide details about its focus. Polymarket has not responded to requests for comment.

The reported probe follows recent allegations that Polymarket paid social media influencers to promote fraudulent bets, a claim that has drawn heightened scrutiny from lawmakers. This development prompted several senators to call for a formal federal investigation into the platform's marketing practices.

In a related effort, House lawmakers initiated a separate examination last month into potential insider trading activities involving Polymarket and its competitor, Kalshi. Both companies have maintained that they prohibit insider trading on their platforms.

The unfolding investigations underscore growing regulatory interest in the rapidly expanding market for prediction trading, where users place bets on the outcomes of real-world events. The inquiries also highlight concerns over transparency and fairness in the promotion and operation of such platforms.