South Korean police initiate criminal cases against 26 Polymarket users over $12.7M in bets, classifying the activity as illegal gambling.
Regulation & Gov ·
South Korean police have initiated criminal cases against 26 Polymarket users, with 18 referred to prosecutors, over approximately $12.7 million in bets placed on the platform. Authorities have classified the activity as illegal gambling under Korean law, while the affected users argue that Polymarket should be treated as a derivatives market rather than a gambling venue. Police traced the users through public blockchain records and open-source intelligence despite the platform's non-custodial structure.
The action follows South Korea's earlier decision to block access to Polymarket, which the government determined was structured in a way that promotes gambling behavior. Similar access restrictions have been implemented in other jurisdictions. The classification dispute—whether prediction markets constitute gambling or derivatives trading—remains unresolved, with users contesting the criminal framing while facing prosecution.
What remains unclear is the timeline for resolution of the referred cases, whether additional jurisdictions will pursue similar enforcement, and how the outcome might affect the operational viability of prediction market platforms in regulated markets.