Polymarket, the crypto prediction market that became a household name during the 2024 US presidential election, has a marketing problem. And by “problem,” we mean more than 1,100 promotional videos featuring fake trades, fabricated winnings, and creators who were told not to mention they were being paid.
A Wall Street Journal investigation revealed that the platform orchestrated a campaign using college-age social media creators who posted videos between December 2025 and mid-May 2026 that deceptively suggested they were making money on Polymarket.
The anatomy of a fake flex
The Journal analyzed 1,105 videos from 10 endorsed creators. In roughly 70% of the analyzed videos, creators were placing bets on dummy websites specifically built by Polymarket for filming purposes. Not on the actual platform.
The fake winnings showcased across these videos totaled nearly $1.9 million. Of that sum, about $900,000 was celebrated as winnings in staged trades. If those trades had actually been executed on the real platform, they would have resulted in losses exceeding $166,000.
Polymarket instructed creators not to disclose that they were being paid for their promotions. Some creators eventually added disclosure tags, but only after the scrutiny began. The Federal Trade Commission requires influencers to clearly disclose paid partnerships.
A platform already walking a regulatory tightrope
The platform has been restricted from serving US users since 2022 after facing a trading ban tied to regulatory issues with the Commodity Futures Trading Commission. Polymarket settled with the CFTC and agreed to wind down operations for US-based traders.
The social media videos were posted on platforms with overwhelmingly US audiences, creating an obvious tension between the company’s regulatory obligations and its apparent growth strategy.
Polymarket rose to mainstream prominence during the 2024 US election cycle, when its prediction markets became a widely cited barometer for electoral outcomes. The platform’s odds were referenced by major news outlets and even cited by political operatives.
Following the Journal’s investigation, Polymarket confirmed it is conducting an audit of its marketing practices and has launched an internal probe into the activities uncovered by reporters. The company has not publicly detailed the scope of that audit or any potential consequences for those involved.
What this means for investors and the broader crypto market
The immediate risk for Polymarket is straightforward: regulatory escalation. The CFTC already has a history with the company, and deceptive marketing practices involving undisclosed paid promotions could invite attention from the FTC as well.
Competitors like Kalshi have been working to establish prediction markets as legitimate financial products, securing regulatory approval to offer certain contracts to US users. Polymarket’s marketing scandal risks tainting the entire category by association.