South Korea probes Polymarket users for illegal gambling

South Korean police have opened an investigation into nationals who placed bets on Polymarket on suspicion of illegal gambling.

Polymarket is a crypto-based prediction market where users buy and sell contracts that pay out in cryptocurrency when events resolve. The platform lists contracts tied to political events, financial outcomes and other measurable results.

Officials say investigators began the probe after detecting transactions linked to domestic accounts. Police are reviewing blockchain records and transaction histories to trace transfers to and from the platform and to identify the individuals involved.

Authorities have not disclosed how many people are under investigation or whether any charges or arrests have been made. Polymarket has not commented on the inquiry. Law enforcement declined to provide details about investigative procedures in this case.

Under South Korean law most forms of online betting and participation in foreign gambling platforms are prohibited, with limited exceptions such as state-run lotteries and authorized sports betting. Using overseas or cryptocurrency-based services does not automatically exempt a person from domestic prosecution if the activity is found to violate gambling statutes.

Tracing user identities on blockchain-based services and transactions involving foreign platforms can be technically complex, which can slow investigations. South Korean investigators commonly work with domestic cryptocurrency exchanges and use blockchain analysis tools when probing cross-border digital transactions.

Authorities in multiple jurisdictions have been examining how existing gambling laws apply to prediction markets and crypto-based wagering; regulators are assessing whether current statutes cover these decentralized and cross-border services.