The U.S. Commodity Futures Trading Commission opened at least three previously unreported Polymarket insider trading investigations spanning bets on Joe Biden's pardons, an Iran military even
The U.S. Commodity Futures Trading Commission opened at least three previously unreported Polymarket insider trading investigations spanning bets on Joe Biden's pardons, an Iran military event contract and Google's 2025 Year in Search, with approvals dating to May and July 2026, according to FOIA records surfaced by WIRED, marking a sharp escalation in scrutiny of the prediction-market sector even as regulators weigh how event contracts fit existing derivatives law.
The disclosures rest on original reporting published September 11, 2026 by WIRED reporter Kate Knibbs, who reviewed CFTC records obtained under the Freedom of Information Act showing the agency authorized evidence-gathering into three separate Polymarket markets, per WIRED's investigation. An investigation authorizes the agency to collect evidence; it does not establish that insider trading occurred or that Polymarket committed wrongdoing. For related coverage, see Bitget API Adds CFD Trading for Gold, Forex and Stock Indices.
Previously unreported Polymarket investigations
At least 3
WIRED reported on September 11, 2026 that FOIA records revealed at least three previously unreported Polymarket investigations involving Biden pardons, Iran event contracts and Google’s 2025 Year in Search. Approvals were reported in May and July 2026; investigations do not establish wrongdoing.The first strand concerns a Polymarket market tied to Joe Biden's pardons, an investigation CFTC official Michael Selig approved in early May 2026, according to WIRED's reading of the FOIA-obtained records. For related coverage, see Ripple Adds AI Agents to Treasury Platform Acquired for $1B.
What the records do not do is identify the specific contract wording, the traders involved, or the transactions that drew scrutiny; the reported authorization names a market and a timeframe, not a target. Unusual trade timing alone does not establish that anyone traded on non-public information.
Which pardon market and trades are under scrutiny? That remains unconfirmed. The reported order did not identify particular trades, and timing alone does not establish their targets, a caveat WIRED itself carries. Readers should treat the pardon strand as an open inquiry, not an allegation against any named individual.
The second investigation, approved in late May 2026, concerns an Iran-related event contract, according to WIRED's account of the CFTC records.
As with the pardon strand, the underlying records reviewed by WIRED do not specify the military event the market tracked, the contract terms, or the size and timing of any trades. No suspected information source is named.
What does the trading timeline establish? On the available evidence, nothing conclusive. Trade timing, amounts or profits have not been documented in the reporting, and unusual timing on a geopolitical contract does not by itself prove insider trading. The strand sits alongside earlier scrutiny of prediction platforms, including European regulators warning Polymarket and Kalshi may lack EU licenses, underscoring how event markets now draw attention across jurisdictions.
The third investigation, approved in July 2026, concerns a market on Google's 2025 Year in Search and involves additional individuals separate from the previously reported Michele Spagnuolo case, according to WIRED.
An internal CFTC email reviewed by WIRED identified a parallel investigation into the Google matter by the Southern District of New York; the CFTC did not answer WIRED's questions about the status of that inquiry.
Who, if anyone, has been identified? The reporting distinguishes this authorization from the existing Spagnuolo case and references additional individuals, but does not establish involvement by Google employees or wrongdoing by Google or Polymarket. The existence of an SDNY track signals criminal-side interest without confirming charges.
These three matters are investigations into potential insider trading, a distinct category from Polymarket's prior run-in with the CFTC. On January 3, 2022, the agency announced settled charges against Blockratize, Inc., doing business as Polymarket, for offering off-exchange event-based binary options without designated contract market designation or swap execution facility registration.
That 2022 order required a $1.4 million civil monetary penalty and the wind-down of non-compliant markets, and it stated that the event-market contracts at issue constituted swaps under CFTC jurisdiction. The settlement concerned registration and off-exchange trading, not insider trading, and functions here as historical background rather than a description of every current Polymarket product.
Investigation, allegation and enforcement finding are three different things. A private investigation authorizes evidence gathering; it does not establish a violation, guarantee charges, or amount to an allegation against the platform. The "adds three" framing refers to three newly surfaced authorizations documented in FOIA records, not a cumulative case tally.
The distinction matters for policy watchers as Washington debates the perimeter of derivatives oversight, including a CLARITY Act update proposing CFTC registration for DeFi and the agency's contested position in the CME suit over Kalshi's Bitcoin perpetuals, both of which test how far the CFTC's authority extends over novel contract structures.
The core claims remain attributed to WIRED because the underlying FOIA voting records, investigation orders and internal email were not published as directly readable primary documents, and no direct CFTC confirmation of current status or outcomes has been obtained.
Joseph Konizeski, a former chief trial attorney in the CFTC's enforcement division, told WIRED that relying solely on press reports would signal regulatory weakness, per WIRED's reporting. Olivia Chalos, Polymarket's deputy chief legal officer, told WIRED the company regularly refers matters to law enforcement and supports investigations while declining case-specific comment.
What are the three Polymarket investigation topics? WIRED's reporting identifies markets tied to Joe Biden's pardons, an Iran-related event contract and Google's 2025 Year in Search.
Has insider trading been proven? No. The reporting documents investigation authorizations approved in May and July 2026 and supplies no findings of wrongdoing.
Is Polymarket itself accused of wrongdoing? The records reviewed by WIRED do not identify the subjects of the inquiries or establish an accusation against the platform, and Polymarket has said it supports investigations.
What happens next? The concrete triggers to watch are any formal CFTC enforcement action, movement in the parallel SDNY track on the Google matter, and whether the agency confirms case status it declined to provide to WIRED. Each would convert an evidence-gathering authorization into a documented allegation or filing.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
The post CFTC Adds 3 Polymarket Insider Trading Investigations was initially published on Coincu.
