Polymarket’s chief marketing officer routed more than $2.5 million through a personal PayPal account to over 800 recipients across 14 months, including at least $350,000 to influencers who promoted the crypto prediction market on X without disclosing they were paid, according to a Politico investigation.
Key Findings Reported
- More than $2.5 million sent via a personal PayPal account over a 14-month period.
- Payments reached over 800 individuals, Politico reported.
- At least $350,000 allegedly went to influencers who promoted Polymarket on X (formerly Twitter) without disclosure.
Undisclosed Influencer Promotions
Politico’s reporting alleges that a portion of the funds was used to compensate social media influencers for favorable posts about Polymarket on X, without clear paid-endorsement disclosures. Undisclosed paid promotions can mislead audiences and run counter to widely recognized advertising standards that call for conspicuous disclosure of material connections between promoters and the subjects they endorse.
About Polymarket
Polymarket is a crypto-based prediction market that lets users trade on the outcomes of real-world events by buying and selling outcome tokens. The platform has drawn significant attention during major political and macroeconomic cycles. In January 2022, Polymarket agreed to a civil monetary penalty and certain restrictions in a settlement with the U.S. Commodity Futures Trading Commission related to offering off-exchange event-based binary options.
Disclosure Rules and Potential Implications
In the United States, the Federal Trade Commission’s Endorsement Guides require influencers and advertisers to clearly and prominently disclose paid relationships so consumers can assess the credibility of promotional content. Social platforms also maintain policies addressing deceptive or undisclosed advertising. Allegations of undisclosed influencer payments can invite heightened scrutiny from regulators and industry watchdogs focused on transparency in digital marketing.
Politico’s report did not immediately indicate whether regulators had opened any new inquiries related to the payments. Polymarket did not provide a public response in the material cited by Politico.