New York State sued Polymarket U.S. for operating an unlicensed gambling platform in violation of state laws, nearly two months after suing competitor Kalshi. The lawsuit seeks penalties including three times Polymarket's gains and $100,000 per wagering offer, citing risks to vulnerable users aged 18–24. Polymarket, regulated federally by the CFTC, defended itself and said it would fight the action.
A Twitter user alleges that Polymarket Perps experienced wash trading involving 17 connected wallets that traded $10.51 million exclusively with each other over 96 hours in September 2026, generating fake volume at minimal cost through coordinated buy-sell reversals within seconds.
A trader alleges that 17 connected wallets on Polymarket Perps engaged in wash trading, moving $10.5 million between accounts and executing simultaneous buy-sell trades with zero net position change over 96 hours to fabricate trading volume while paying minimal fees.