Polymarket Tightens Checks as Trump Election Bets Soar

Polymarket, a crypto-based prediction platform, has increased its user verification procedures due to a significant surge in bets supporting Donald Trump in the upcoming US presidential election. The platform is now taking further steps to ensure that all users are complying with US regulations, particularly as it is restricted from operating within the United States.

The rise in political betting on the platform, with more than 64% of predictions backing Trump to win, has drawn additional scrutiny. As the number of wagers grows, Polymarket is conducting more thorough checks to confirm that the users, especially those making large bets, are not US-based. This move is crucial because the platform is barred from accepting US customers, and it is focused on preventing any regulatory violations.

According to reports from Bloomberg, a few accounts have placed significant bets. Four accounts, in particular, have collectively wagered a total of $43 million on Trump's victory. One of these accounts, known as Fredi9999, alone has placed more than $18 million in bets favoring Republican outcomes. The platform is now reviewing the activities of these high-stakes accounts as part of its commitment to regulatory compliance.

Further investigation has raised the possibility that these four accounts could be connected. The betting patterns between them appear highly similar, with one account placing bets while another pauses, and then picking up after the first account stops. This unusual activity suggests that all four accounts may be operated by the same individual or entity, although none of these accounts are reportedly based in the United States.

A viral post from Fozzy, an account on X (formerly Twitter), drew attention to the possibility of the accounts being linked. The post noted that while all four accounts have been placing significant bets on Trump’s election chances, the coordinated betting activity and lack of overlap between the accounts’ actions imply that they might be acting as a single entity, or at the very least, have some kind of connection.

Polymarket is determined to prevent any US-based users from circumventing its restrictions. Even though the platform blocks US users, there are concerns that some may be using tools like VPNs to bypass these restrictions and access the platform. In light of the high level of betting activity, Polymarket is increasing its efforts to verify the locations of its users and ensure that no violations of US regulations occur.

This isn’t the first time Polymarket has faced regulatory challenges. In early 2022, the platform settled a case with the Commodity Futures Trading Commission (CFTC) after being accused of offering illegal trading services in the United States. The platform agreed to stop serving US customers as part of the settlement. However, it was allowed to continue its operations internationally, provided it did not violate the terms of the agreement.

Since then, Polymarket has operated with a heightened focus on compliance, particularly as political betting has become more popular. The rise in election-related activity on the platform has only increased the need for diligence, especially with the US presidential election drawing closer. Polymarket is working hard to uphold its commitments to both the CFTC and the international market while dealing with the sharp increase in activity around Trump’s campaign.

As the US election approaches, Polymarket is expected to face continued scrutiny, particularly as more users turn to the platform to place bets on the outcome. The company’s verification measures are designed to maintain compliance with its agreement to block US users and prevent regulatory issues. Polymarket's actions to tighten user checks reflect its ongoing efforts to navigate the complex regulatory landscape surrounding cryptocurrency-based prediction markets.

The situation highlights the challenges that platforms like Polymarket face in balancing user demand with regulatory requirements. As interest in political betting continues to grow, platforms like Polymarket will need to find ways to ensure that they remain compliant while offering their services to an international audience. With the US election set to be one of the most closely watched events, it is likely that the surge in activity on Polymarket will continue, making compliance even more crucial.

Polymarket’s rise in popularity as a predictions platform has brought it into the spotlight, particularly in politically charged events like the US presidential election. The platform, which operates in the crypto space, allows users to place bets on a wide range of outcomes, including political events, which are often seen as more volatile and unpredictable. This can attract users who are willing to place significant amounts of money on outcomes they believe to be certain, as seen with the four accounts betting millions on Trump’s election chances.

However, Polymarket’s focus remains on ensuring that its operations are within the bounds of international regulations. The company continues to enforce its no-US-users policy while monitoring accounts that could be attempting to bypass restrictions. The rise in Trump-related betting is likely to keep the platform under close watch, both from regulators and from the public, as the election draws nearer.

In conclusion, Polymarket is taking proactive steps to ensure compliance with US restrictions as it faces an increase in high-stakes political bets. With $43 million placed on Trump’s election outcome by just four accounts, the platform is ramping up its user verification process to ensure that all bets are made by eligible users and no US-based individuals are using the platform in violation of regulations. As the election season heats up, Polymarket will remain focused on keeping its operations within legal bounds while managing the surge in betting activity around the US presidential race.