Federal Regulators Launch Inquiries Into Polymarket Trading Activity

Industry Pulse News Desk · 2026-09-11

U.S. government documents reveal probes into potential insider trading involving presidential pardons, geopolitical conflicts, and corporate data.

Federal regulators have opened three previously unannounced investigations into trading activity on the prediction market platform Polymarket, according to internal government documents. The probes focus on suspected insider trading and policy violations tied to high-stakes political and corporate events.

The regulatory agency overseeing prediction markets launched the inquiries following suspicious betting patterns on the decentralized platform. Investigators are examining trades linked to potential presidential pardons involving President Joe Biden, geopolitical developments in Iran, and confidential corporate information involving Google.

The investigation into presidential pardons centers on whether individuals with advance knowledge of executive actions placed wagers on the platform prior to public announcements. Similarly, the inquiry regarding military action in the Middle East is reviewing whether non-public intelligence or government decisions influenced trading volumes.

A third probe targets transactions involving Google, where federal officials are scrutinizing potential insider trading linked to market-moving corporate announcements. Federal guidelines strictly prohibit the use of non-public material information to execute trades across prediction platforms accessible to market participants.

Polymarket operates as a decentralized prediction exchange where users trade shares based on the outcomes of real-world events. Regulators have steadily increased oversight of these platforms to enforce compliance with federal financial laws and prevent market manipulation.